National Company Law Appellate Tribunal Dismisses Appeal in Insolvency Proceedings Due to Delay. Condonation of Delay Not Granted as Earlier Proceedings Were Not Before a Court Lacking Jurisdiction.

Tribunals: National Company Law Appellate Tribunal Bench: NEW DELHI
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Case Note & Summary

The case involved an appeal filed by a suspended partner of Sumarrow Impex LLP against an order of the National Company Law Tribunal (NCLT) admitting a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant sought to condone a delay of 201 days in filing the appeal, arguing that the delay was due to a technical defect in the earlier appeal, which was dismissed for non-prosecution. The appellant contended that the earlier appeal was filed in the wrong name due to mistaken legal advice. The Tribunal noted that the earlier appeal was dismissed solely on a technicality and not on merits. However, the Tribunal ruled that the delay could not be condoned as the earlier proceedings were not before a court lacking jurisdiction, thus failing to meet the criteria under Section 14 of the Limitation Act. The Tribunal ultimately dismissed both the application for condonation of delay and the appeal itself, emphasizing that the law only allowed for a limited extension of time for filing appeals. The decision was rendered by Justice Mohd. Faiz Alam Khan and Naresh Salecha on 2026-08-13.

Headnote

A) Limitation - Condonation of Delay - Application for condonation of delay dismissed - Limitation Act, 1963, Section 14 - The Appellant sought to condone a delay of 201 days in filing an appeal, claiming only 5 days of actual delay. The Tribunal found that the earlier appeal was dismissed due to a technical defect and not on merits, but ruled that the delay could not be condoned as the earlier proceedings were not before a court lacking jurisdiction. Held that the application for condonation of delay was dismissed (Paras 22-24).

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Issue of Consideration

Whether the delay of 201 days in filing the appeal could be condoned under the Limitation Act.

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Final Decision

The application for condonation of delay of 201 days was dismissed, leading to the dismissal of the appeal as well.

Law Points

  • Limitation Act
  • Insolvency and Bankruptcy Code
  • appeal maintainability
  • technical defects
  • jurisdiction
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Case Details

2026 LawText (NCLAT) (08) 13

CA (AT) (Ins) No. 1231 of 2026 & IA No. 4752 of 2026

2026-08-13

Justice Mohd. Faiz Alam Khan, Naresh Salecha

Mr. Manu Bansal

Suhail Salim Sumar

Drip Capital Inc & Anr.

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Nature of Litigation

Appeal against the admission of a petition under the Insolvency and Bankruptcy Code.

Remedy Sought

Condonation of delay in filing the appeal.

Filing Reason

Delay attributed to a technical defect in the earlier appeal.

Previous Decisions

Earlier appeal dismissed for non-prosecution due to a technical defect.

Issues

Whether the delay in filing the appeal could be condoned under the Limitation Act.

Submissions/Arguments

The appellant argued that the delay was only 5 days and sought to exclude the time spent in earlier proceedings. The Tribunal found that the earlier proceedings were not before a court lacking jurisdiction, thus Section 14 of the Limitation Act was not applicable.

Ratio Decidendi

The Tribunal held that the delay in filing the appeal could not be condoned as the earlier proceedings were not before a court lacking jurisdiction, thus failing to meet the criteria under Section 14 of the Limitation Act.

Judgment Excerpts

The earlier appeal was dismissed solely on account of a technical defect regarding the description of Appellant in the appeal. The law is well settled that this Appellate Tribunal has jurisdiction only to condone the delay of 15 days, in addition to the 30 days stipulated time available for filing the appeal. We do not find any merit in the application filed by the appellant to condone the delay of 201 days.

Procedural History

The appellant filed an appeal against the NCLT order on 6/11/2025, which was dismissed for non-prosecution on 19/01/2026. Restoration proceedings were initiated, and the appeal was restored. An amendment application was allowed on 7/05/2026, but the appeal was dismissed on 22/05/2026 for maintainability. The current appeal was filed on 28/05/2026.

Acts & Sections

  • Limitation Act, 1963: Section 14
  • Insolvency and Bankruptcy Code, 2016: Section 61, Section 238A
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