Case Note & Summary
The Company Appeal (AT) No. 326 of 2026 was filed by the Liquidator of M/s Brown Packaging Systems Pvt. Ltd. challenging an order dated 08.12.2025 from the National Company Law Tribunal, which had partially allowed his application regarding remuneration. The Appellant contended that the remuneration approved was less than what was agreed upon in a meeting held on 23.10.2025, and that it violated the provisions of the Companies Act, 2013, and the Companies (Winding Up) Rules, 2020. The appeal was filed on 10.01.2026, but defects were noted by the Tribunal, and despite several notifications, the Appellant failed to rectify them, leading to a delay of 202 days in refiling. The Appellant filed an application for condonation of this delay, citing the medical issues of his counsel's mother as the reason for the inability to rectify the defects. The Tribunal analyzed the circumstances and concluded that the delay was inordinate and unexplained, as the counsel's personal issues could not be considered as a valid reason for the Appellant's failure to act. The Tribunal emphasized that the Liquidator, being knowledgeable about the proceedings, should have taken steps to rectify the defects independently. Consequently, the application for condonation of delay was rejected, and the Company Appeal was dismissed.
Headnote
A) Company Law - Delay in Refiling - Condonation of Delay - NCLAT Rules, 2016, Rule 26 - The Appellant sought to condone a delay of 202 days in refiling the Company Appeal, attributing it to the medical circumstances of his counsel's mother. The Tribunal held that the delay was inordinate and unexplained, emphasizing that the counsel's personal circumstances could not be attributed to the Appellant's inability to rectify defects, leading to the rejection of the application for condonation of delay (Paras 12-13).
Issue of Consideration
Whether the delay of 202 days in refiling the Company Appeal could be condoned.
Final Decision
The application for condonation of delay was rejected, and the Company Appeal (AT) No. 326 of 2026 was dismissed due to the inordinate and unexplained delay of 202 days in refiling.
Law Points
- Liquidator's remuneration
- Delay in refiling
- Condonation of delay
- NCLAT Rules
- Professional ethics
