Case Note & Summary
This judgment concerns a company application filed by Jagdish Lal Gupta, the appellant in an appeal under Section 10F of the Companies Act, 1956, seeking condonation of delay in filing the appeal. The appeal was directed against an order dated 24th January 2012 passed by the Company Law Board (CLB), Principal Bench, New Delhi. The appellant claimed that he had a right to receive a certified copy of the CLB order under Regulation 29(4) of the Company Law Board Regulations, 1991, but was not provided one. He allegedly came to know of the order only in August 2012 and filed the appeal on 22nd November 2012, which was beyond the initial 60-day period but within the extended 60-day period (total 120 days) from the date of knowledge. The respondents opposed the application, arguing that the limitation period should run from the date of the order or from the date the appellant had knowledge of it, and that the appeal was filed beyond 120 days from the date of knowledge. The court examined the language of Section 10F, which prescribes a maximum period of 120 days for filing an appeal, and noted that the Supreme Court has settled that this period cannot be extended beyond 120 days. The court held that the limitation period runs from the date of knowledge of the order, not from the date of receipt of a certified copy. The court found that the appellant had knowledge of the order at least by 28th February 2012, when his advocate received a copy, and the appeal filed on 22nd November 2012 was beyond 120 days from that date. Consequently, the court dismissed the application for condonation of delay and the appeal.
Headnote
A) Company Law - Limitation for Appeal - Section 10F Companies Act, 1956 - Reckoning of Limitation Period - The limitation period of 120 days for filing an appeal under Section 10F runs from the date of knowledge of the order, not from the date of receipt of a certified copy under Regulation 29(4) of the CLB Regulations, 1991. The court held that the right to receive a certified copy does not postpone the commencement of limitation, and the appeal filed beyond 120 days from the date of knowledge is barred. (Paras 1-15)
Issue of Consideration
Whether the limitation period of 120 days under Section 10F of the Companies Act, 1956 for filing an appeal against an order of the Company Law Board runs from the date of knowledge of the order or from the date of receipt of a certified copy under Regulation 29(4) of the CLB Regulations, 1991.
Final Decision
The court dismissed the company application for condonation of delay and the appeal, holding that the limitation period under Section 10F runs from the date of knowledge of the order, and the appeal was filed beyond the maximum period of 120 days.
Law Points
- Limitation period for appeal under Section 10F of Companies Act
- 1956 runs from date of knowledge of order
- not from receipt of certified copy
- Regulation 29(4) of CLB Regulations does not extend limitation period
Case Details
2014 LawText (BOM) (03) 57
Company Application (L) No. 32 of 2013 with Company Appeal (L) No. 51 of 2012 and Company Application No.38 of 2013 and Company Application No.39 of 2013
Mr. Z.T. Andhyarujina, with Mr. Kunal Dwarkadas, Ms. Vaidehi Naik, Ms. Shruti Sardesai, i/b Phoenix Legal for the applicant; Ms. Sunila Chavan, i/b Mr. Satyan Irani for respondents 1 to 5; Mr. R.I. Chagla, with Mr. Hemand Telkar, i/by M/s. Haresh Mehta & Co. for respondent no.7
Tara Industries Limited & Ors.
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Nature of Litigation
Company application for condonation of delay in filing an appeal under Section 10F of the Companies Act, 1956 against an order of the Company Law Board.
Remedy Sought
The applicant sought condonation of delay in filing the appeal and setting aside of the CLB order.
Filing Reason
The applicant claimed he was not provided a certified copy of the CLB order under Regulation 29(4) and only came to know of it in August 2012, leading to delay in filing the appeal.
Previous Decisions
The Company Law Board passed an order on 24th January 2012. The appeal was filed on 22nd November 2012.
Issues
Whether the limitation period of 120 days under Section 10F of the Companies Act, 1956 runs from the date of knowledge of the order or from the date of receipt of a certified copy under Regulation 29(4) of the CLB Regulations, 1991.
Whether the delay in filing the appeal can be condoned when the appeal was filed beyond 120 days from the date of knowledge.
Submissions/Arguments
The applicant argued that he had a right to receive a certified copy under Regulation 29(4) and since he was not given one, the limitation period should run from the date he received a copy or from the date of knowledge in August 2012.
The respondents argued that the limitation period runs from the date of the order or from the date of knowledge, and the appeal was filed beyond 120 days from the date of knowledge, hence barred.
Ratio Decidendi
The limitation period of 120 days under Section 10F of the Companies Act, 1956 for filing an appeal against an order of the Company Law Board runs from the date of knowledge of the order, not from the date of receipt of a certified copy under Regulation 29(4) of the CLB Regulations, 1991. The right to receive a certified copy does not postpone the commencement of limitation.
Judgment Excerpts
The question is not whether a court can condone delay beyond the maximum period of 120 days specified in Section 10F — that a court cannot is now well-settled — but from what date should that period be reckoned.
The limitation period runs from the date of knowledge of the order, not from the date of receipt of a certified copy.
Procedural History
The Company Law Board passed an order on 24th January 2012. The appellant filed an appeal under Section 10F of the Companies Act, 1956 on 22nd November 2012, along with an application for condonation of delay. The High Court heard the application and dismissed it on 11th March 2014.
Acts & Sections
- Companies Act, 1956: 10F
- Company Law Board Regulations, 1991: 29(4)
