The IBC mandates strict adherence to limitation periods for appeals, emphasizing timely resolution in insolvency proceedings.

JUDGMENT

[Per: Barun Mitra, Member (Technical)]

The present appeal filed under Section 61 of Insolvency and Bankruptcy Code 2016 (‘IBC’ in short) by the Appellant arises out of the Order dated 22.11.2023 (hereinafter referred to as ‘Impugned Order’) passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench-VI) in Company Petition (IB) No. 277/MB/2022. By the Impugned Order, the Adjudicating Authority admitted the Section 9 petition filed by the Operational Creditor admitting M/s Pritdip Impex Pvt Ltd – Corporate Debtor into the rigours of Corporate Insolvency Resolution Process (‘CIRP’ in short). Aggrieved by this impugned order, the present appeal has been preferred by the suspended director. A delay condonation application has been filed vide I.A. No.1009 of 2024 seeking condonation delay of 41 days in filing the present appeal.

2. The Learned Counsel for the Appellant submitted that since the Adjudicating Authority had passed ex-parte order in the main company petition CP-IB/277(MB)/2023 on 27.06.2023, the Appellant had no knowledge of the proceedings. The Appellant became aware of the proceedings only when the interim resolution professional informed the Appellant on 06.12.2023 about the impugned order through email. It is the case of the Appellant that an appeal can be filed by an aggrieved person only when he becomes aware of the order and in the present circumstances when the Appellant became aware of the orders only on 06.12.2023, the limitation period should be counted from that date. Further it was submitted that some time needs to be excluded while calculating the limitation period in the present case. Explaining further, it was pointed out that as the Appellate Tribunal was having Winter/Christmas holidays from 23.12.2023 till 01.01.2024, this holiday period of 9 days needs to be excluded. Basis this calculation, the period of 30 days for filing the appeal would have expired on 13.01.2024 which date being a Saturday and a nonworking day followed by Sunday being yet another holiday, the last date for the purpose of filing the appeal would be 15.01.2024. It was further submitted that during this period a close cousin of the Appellant had passed away which necessitated his presence for the related rituals for 13 days. That apart, the other reasons for delay were that the Appellant was suffering from chronic depression and illness and some delay was on account of logistical delay in sending relevant documents to the Advocate. Further taking into account 15 permissible days as the extended period of limitation in terms of proviso to Section 61 (2) of the IBC, starting from 16.01.2024 the 15 days period ended on 31.01.2024 after factoring in one day of public holiday on account of 26th January. Admitting that the appeal was filed on 01.02.2024, it was claimed that it meant effectively only 16 days delay beyond the permitted 30 days limitation time. In sum it was pointed out that keeping in view the ill health of the Appellant and bereavement in the family coupled with intervening holiday/vacations, the delay deserves to be condoned.

3. In support of their contention, the Learned Counsel for the Appellant has relied on the judgment of this Tribunal in the case of M/s Embee Software Private Limited vs M/s Solicon Private Limited in CA (AT) (INS) No. 780 of 2019 which had allowed condonation of delay in similar circumstances of bereavement in the family and summer vacations which is to the effect:

“4. Taking into consideration the fact that the Applicant/Appellant has come out with the reasons in the Int