National Spot Exchange Ltd. vs Mr. Anil Kohli, Resolution Professional for Dunar Foods Ltd.

Civil Appeal No. 6187 of 2019

The Hon’ble Supreme Court has passed a recent Judgment in the matter of National Spot Exchange Ltd. Vs Mr. Anil Kohli, holding therein that by virtue of the provisions contained in Section 61 of the Insolvency and Bankruptcy Code, 2016 (“Code”), no appeal shall be maintainable before the National Company Law Appellate Tribunal (“Appellate Authority”), if it is filed beyond the period of 15 days after the statutorily prescribed period of 30 days in which an Appeal under the Code can be preferred.

The Hon’ble Supreme Court was of the view that the uncondonable period of 15 days has to be strictly read and cannot even be condoned in exercise of powers under Article 142 of the Constitution of India.

Further, reliance was placed by the Hon’ble Court on the judgment of Oil & Natural Gas Corporation Limited v. Gujarat Energy Transmission Corporation Limited (AIR 2017 SC 1352), wherein it was held that “if the statute commands that the court shall not condone the delay beyond a particular days, in other words, can condone delay only up to a particular days and not beyond that, it would come within the ambit and sweep of the provisions and policy of legislation and therefore it is un-condonable and it cannot be condoned even taking recourse to Article 142 of the Constitution of India”.

This Judgment of the Hon’ble Supreme Court is important from the perspective that it lays down the clear law on Condonation of Delay in respect of Appeals preferred before the Appellate Authority under the Code.