Case Note & Summary
The appellant, Hero Exports, challenged the order of the National Company Law Tribunal (NCLT), Chennai, dated 12.06.2019 approving the resolution plan in favour of Respondent No.3 in the Corporate Insolvency Resolution Process (CIRP) of M/s Tiffins Barytes Asbestos & Paints Ltd. The appellant also challenged the subsequent order dated 04.11.2019 rejecting its application for recall of the approval order. The appellant had filed the appeal before the National Company Law Appellate Tribunal (NCLAT) in 2020, which was beyond the limitation period prescribed under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC). The NCLAT noted that the appeal was filed beyond the maximum period of 45 days (30 days plus 15 days as per proviso) from the date of the impugned order. The appellant argued that the delay should be condoned, but the NCLAT held that it had no power to condone the delay beyond the statutory period. The NCLAT also observed that the recall application was in the nature of a review, which the Adjudicating Authority had no jurisdiction to entertain under the IBC. Consequently, the appeal was dismissed as time-barred and without merit.
Headnote
A) Insolvency and Bankruptcy Code - Appeal - Limitation - Section 61 of IBC, 2016 - The appeal was filed beyond the prescribed period of 30 days and the further period of 15 days as per proviso to Section 61(2) - The appellant sought recall of the order approving resolution plan, which was rejected on 04.11.2019 - The appeal was filed in 2020, beyond the maximum period of 45 days - Held that the appeal is time-barred and cannot be entertained (Paras 1-5). B) Insolvency and Bankruptcy Code - Recall Application - Review - Section 61 of IBC, 2016 - The appellant filed a recall application after the approval of the resolution plan, which was in the nature of a review - The Adjudicating Authority has no power to review its own orders under the IBC - The rejection of the recall application was upheld - Held that the recall application was rightly rejected (Paras 2-4).
Issue of Consideration
Whether the appeal against the order dated 04.11.2019 rejecting the recall application is maintainable and whether the delay in filing the appeal can be condoned.
Final Decision
The appeal is dismissed as time-barred and without merit.
Law Points
- Limitation for filing appeal under Section 61 of IBC
- Recall application treated as review
- No power to review under IBC
- Condonation of delay beyond prescribed period
