NCLAT Rules Limitation For Appeals Computed From E-Filing Date

NCLAT Rules Limitation For Appeals Computed From E-Filing Date

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member), has clarified that the limitation period for appeals is calculated from the date of e-filing, not from the date of the physical filing.

Innovators Cleantech Pvt. Ltd. (Appellant) filed an appeal under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Pasari Multi Projects Pvt. Ltd. (Respondent). The appeal followed the dismissal of their application by the adjudicating authority. The appellant e-filed the appeal on September 25, 2023.

During the proceedings, the respondent raised concerns about procedural delays and defects in the appeal. Despite a caveat filed on September 13, 2023, and subsequent defect notices from the Registry, the appellant faced multiple re-filing issues. The appeal, initially defective, was refiled on 15 December 2023 and later on 8 January 2024 after addressing various defects. The appeal was listed on 25 January 2024, accompanied by a request for condonation of an 86-day delay in refiling.

The NCLAT examined Rule 22 and Rule 26 of the National Company Law Appellate Tribunal Rules, 2016, which govern the filing and scrutiny of appeals. The Tribunal noted that Rule 103 allows electronic filing of appeals, with limitation periods computed from the date of e-filing. This aligns with the Supreme Court's ruling in Sanket Kumar Agarwal vs. APG Logistics Pvt. Ltd., which established that the limitation period starts from the date of e-filing, provided a physical copy is filed within seven days.

The NCLAT also referenced Delhi High Court decisions in Delhi Development Authority v. Durga Construction Co., Indira Gandhi National Open University v. M/s Sharat Das & Associates Pvt. Ltd., and IRCON International Ltd. v. Reacon Engineers (India) (P) Ltd., which emphasized that initial filings with defects are not considered valid. The Tribunal reaffirmed that the valid filing date is when defects are cured.

Further, the Tribunal clarified that re-presentation beyond seven days does not constitute a fresh filing. The NCLAT's order on 24 December 2022 supports this approach, indicating that limitation periods should be computed from the e-filing date. The necessity of applying for a certified copy of the order before filing an appeal, as per the Supreme Court’s decision in V. Nagarajan v. SKS Ispat and Power Ltd. and Ors., does not affect the e-filing process.

Consequently, the NCLAT upheld the appeal filed on 25 September 2023 as within the limitation period and granted condonation for the delay in refiling. The Tribunal found no grounds to overturn the previous order.