Case Note & Summary
The National Company Law Appellate Tribunal dealt with two company appeals concerning Khanna Fiber Pvt. Ltd. and Grownd Realty Pvt. Ltd. against Khanna Paper Mills Ltd. The appeals arose from orders dated 08.01.2026 passed by the NCLT, Chandigarh, regarding interim relief and the necessity for financial statements. The Appellants sought condonation for a delay of 106 days in refiling their appeals, attributing the delay to mediation proceedings initiated by the parties. The Tribunal found the reasons for the delay satisfactory and condoned it. On the merits, the Appellants contested the interim relief granted by the NCLT, which directed the provision of audited financial statements for the financial years 2023-24 and 2024-25. The Tribunal noted that the interim order was interlocutory and should be challenged through a stay vacation application rather than an appeal. Consequently, the Tribunal dismissed the appeals, allowing the Appellants to seek relief through appropriate applications before the NCLT.
Headnote
A) Companies Act - Delay Condonation - Condonation of Delay in Refiling - Companies Act, 2013, Section 421 - The Appellant sought condonation of a delay of 106 days in refiling the company appeals due to mediation proceedings. The Tribunal found the delay to be justifiable and condoned it, allowing the applications for condonation of delay (Paras 5-5). B) Companies Act - Interim Relief - Justification for Interim Relief - Companies Act, 2013, Section 98 - The Appellant challenged the interim relief granted by the NCLT, arguing it was erroneously issued. The Tribunal held that the interim order was interlocutory and should be addressed through a stay vacation application rather than an appeal, thus dismissing the appeal (Paras 12-12).
Issue of Consideration
Whether the delay in refiling the company appeals should be condoned and whether the interim relief granted by the NCLT was justified.
Final Decision
The Tribunal condoned the delay of 106 days in refiling the company appeals and dismissed the appeals on the grounds that the interim relief was interlocutory and should be addressed through a stay vacation application.
Law Points
- Appellate jurisdiction
- delay condonation
- interim relief
- mediation
- financial statements
- extraordinary general meeting
- Companies Act
- 2013
