Case Note & Summary
The applicant, Santosh Kumar Hegde, filed a company application seeking condonation of delay of 135 days in lodging a company appeal against an order dated 27th March 2014 passed by the Company Law Board. The respondents raised a preliminary objection that the High Court has no power to condone delay beyond the period of 60 days as prescribed under Section 421 of the Companies Act, 2013. The applicant argued that the court has inherent power to condone delay and relied on precedents. The court, after hearing both sides, held that Section 421 of the Companies Act, 2013 provides a limitation period of 60 days for filing an appeal, and the court cannot condone delay beyond that period. The court distinguished the present case from other precedents cited by the applicant, noting that the statutory provision is clear and does not allow any extension beyond 60 days. Consequently, the application for condonation of delay was dismissed, and the company appeal was also dismissed as time-barred.
Headnote
A) Company Law - Limitation for Appeal - Section 421 Companies Act, 2013 - Condonation of Delay - The court held that under Section 421 of the Companies Act, 2013, an appeal against an order of the Company Law Board must be filed within 60 days, and the court has no power to condone delay beyond that period, even if sufficient cause is shown. The provision is a special limitation excluding the application of Section 5 of the Limitation Act, 1963. (Paras 1-10)
Issue of Consideration
Whether the High Court has power to condone delay beyond 60 days in filing an appeal under Section 421 of the Companies Act, 2013 against an order of the Company Law Board.
Final Decision
Application for condonation of delay dismissed; Company Appeal No.43 of 2015 dismissed as time-barred
Law Points
- Limitation for appeal under Section 421 of Companies Act
- 2013 is 60 days
- court has no power to condone delay beyond that period
- Section 5 of Limitation Act not applicable
- statutory limitation is absolute
Case Details
2017 LawText (BOM) (02) 49
Company Application (Lodging) No.1 of 2017 in Company Appeal No.43 of 2015 in Company Petition No.35 of 2013
Mr. Neerav Merchant with Mr. Ishwar Ahuja, Mr. S.S. Lanke and Mr. Bharat Merchant i/b Thakordas & Madgavkar for the Applicant/Appellant; Mr. Farhan Dubash with Mr. Praveer Shetty i/b RES Legal for the Respondent
Parimala Hospitality Private Limited, Manjunath N. Shetty, Prabhakar V. Punja, Eva Holding Private Limited
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Nature of Litigation
Application for condonation of delay in filing company appeal against order of Company Law Board
Remedy Sought
Condonation of delay of 135 days in lodging the company appeal
Filing Reason
Delay in filing appeal due to reasons not specified in the text
Previous Decisions
Company Law Board passed order on 27th March 2014
Issues
Whether the High Court has power to condone delay beyond 60 days under Section 421 of Companies Act, 2013
Submissions/Arguments
Respondent argued that court has no power to condone delay beyond 60 days; Applicant argued that court has inherent power to condone delay
Ratio Decidendi
Under Section 421 of the Companies Act, 2013, the limitation period for filing an appeal against an order of the Company Law Board is 60 days, and the High Court has no power to condone delay beyond that period, as the provision is a special limitation excluding the application of Section 5 of the Limitation Act, 1963.
Judgment Excerpts
By this company application, the applicant (original appellant) seeks condonation of delay of 135 days in lodging the company appeal against the impugned order dated 27th March, 2014 passed by the Company Law Board.
Mr.Dubash, learned counsel appearing for the respondent raises a preliminary issue that this Court has no power to condone the delay beyond the period of 60 days and that also provided sufficient cause for seeking condonation of delay is made out.
Procedural History
Company Law Board passed order on 27th March 2014; applicant filed Company Appeal No.43 of 2015 with delay of 135 days; applicant filed Company Application (Lodging) No.1 of 2017 for condonation of delay; High Court heard the application on 24th February 2017 and dismissed it.
Acts & Sections
