The NCLAT, Chennai Bench opined that the procedural provision in the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC”) such as time limits need to be applied in true letter and spirit because speed is the essence of IBC. The Tribunal expounded that Section 238 of the IBC overrides the Limitation Act and therefore, Section 12 of the Limitation Act cannot be made applicable when the delay is beyond a period of 45 days.
Brief Facts:
The Appellant has preferred the present appeal with a delay of 25 days; therefore, an application for condonation of delay is filed to condone the delay in the interest of justice.
Observations of the Tribunal:
It was observed that an appeal has to be filed within 30 days as per Section 61 of the IBC. A maximum of 15 days has been provided as an extension if a sufficient cause exists.
Further, it was opined that the procedural provision in IBC such as time limits need to be applied in true letter and spirit because speed is the essence of IBC. Moreover, if there is a particular and specified manner and time as per which a remedy has to be exercised, the same cannot be done in any other manner.
It was held that the Appellate Authority does not have the power to condone the delay after the expiry of the outer limit i.e., 45 days. IBC being a self-contained and inbuilt code does not provide room for the Tribunal to condone the delay after 45 days. The Tribunal expounded that Section 238 of the IBC overrides the Limitation Act; therefore, Section 12 of the Limitation Act cannot be applicable in the present case.
The decision of the Tribunal:
Based on the above-mentioned reasons, the bench rejected the application for condonation of delay.
Case Title: M/s. Platinum Rent A Car (India) Pvt. Ltd. V.M/s. Quest Offices Limited
Coram: Justice M. Venugopal (Judicial Member), Shreesha Merla (Technical Member)
Case No.: Comp App (AT)(CH)(Ins.) No. 448/2022
Advocate for Appellant: Advs. Mr. V. Nallasenapathy
Advocate for Respondent: Adv. Ms. Aishwarya
Read Order @LatestLaws.com
Picture Source :