The Principal Bench of the NCLAT allows a delayed appeal, emphasizing the non-mandatory nature of a written application for condonation of delay under Indian law.
In a significant ruling, the Principal Bench of the National Company Law Appellate Tribunal (NCLAT) in New Delhi, comprising Justice Yogesh Khanna and Mr. Ajai Das Mehrotra, addressed the issue of delay in filing an appeal under the Insolvency and Bankruptcy Code (IBC), 2016. The tribunal ruled in favor of Advantages ai Projects Pvt Ltd, the appellant, condoning a three-day delay in filing the appeal against Akshay Techforge Pvt Ltd, the respondent.
The case revolved around the filing of an appeal beyond the statutory period of 30 days as prescribed under Section 61(2) of the IBC. The tribunal recognized that the appeal was filed within an additional condonable period of 15 days. Importantly, the tribunal noted that no objection regarding the delay was raised by the respondent at the relevant time, implying no prejudice was caused due to the short delay.
In its judgment dated December 19, 2025, the tribunal referred to the Supreme Court's ruling in Sesh Nath Singh v. Baidyabati Sheor Aphuli Cooperative Bank Ltd., which clarified that a written application for condonation of delay is not mandatory under Section 5 of the Limitation Act, 1963. The tribunal emphasized that the court has the discretion to condone delays even without a formal application, thereby reinforcing the principle that procedural technicalities should not impede substantive justice.
The tribunal also addressed the procedural history of the case, noting that the appellant had initially filed a civil appeal before the Supreme Court of India. However, the appeal was withdrawn, with the liberty to approach the NCLAT, as the appellant contended that the appeal was time-barred without a formal application for condonation of delay.
The tribunal's order underscored that the respondent's failure to raise an objection to the delay further supported the condonation. The judgment highlighted that the delay was within the 15-day grace period allowed by the IBC, thus justifying the condonation.
This decision emphasizes the NCLAT's approach towards ensuring that justice is not denied due to procedural lapses, especially when such lapses do not cause prejudice to the opposing party. The ruling is expected to have significant implications for the interpretation of delay condonation provisions under the IBC and the Limitation Act, reinforcing the judiciary's commitment to substantive justice over procedural formalities.
Bottom Line:
A delay in filing an appeal within the grace period of 15 days beyond the statutory period of 30 days under Section 61(5) of the Insolvency and Bankruptcy Code (IBC) can be deemed condoned, especially when no objection was raised by the opposing party at the relevant time.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Section 61(2), Section 61(5); Limitation Act, 1963 Section 5
