National Company Law Appellate Tribunal Allows Restoration Application in Company Appeal — Delay Condoned Due to Counsel's Pre-engagement. Condonation of delay was granted as the absence of counsel was due to a prior engagement before the Apex Court.

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

The National Company Law Appellate Tribunal dealt with Restoration Application No. 16 – 20 of 2026 concerning Company Appeal (AT) (Ins) No. 418 - 422 of 2024. The appellant, Sundeep Shah, sought to recall an order dated 31.01.2026, which dismissed the company appeal for want of prosecution. The dismissal was attributed to the absence of the appellant's counsel, who was engaged in a matter before the Apex Court. The appellant filed the restoration application after a delay of 43 days, which was initially opposed by the respondents on the grounds that the reasons provided for the delay were not sustainable. The respondents argued that the explanation regarding the clerk's family emergency was concocted and insufficient. However, the Tribunal acknowledged the possibility that documents could have been in the custody of the clerk and found merit in the appellant's explanation. Consequently, the Tribunal condoned the delay in refiling the restoration application. Upon hearing the parties, the Tribunal determined that the absence of counsel constituted sufficient cause for the dismissal of the appeal and thus allowed the restoration application. The order dated 31.01.2026 was recalled, and the company appeal was restored to its original number, with a direction to list the appeal on 11.09.2026.

Headnote

A) Company Law - Restoration of Appeal - Condonation of Delay - Company Appeal (AT) (Ins) No. 418 - 422 of 2024 - The appellant sought to recall the dismissal order due to absence of counsel, attributing delay to clerk's family emergency. The Tribunal found merit in the explanation and condoned the delay, restoring the appeal to its original number. Held that sufficient cause was established for restoration (Paras 4-5).

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Issue of Consideration

Whether the delay in refiling the restoration application should be condoned and whether the appeal should be restored.

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Final Decision

The Tribunal allowed the restoration application, condoned the 43 days delay in refiling, and restored the company appeal to its original number.

Law Points

  • Restoration of appeal
  • Condonation of delay
  • Sufficient cause for absence
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Case Details

2026 LawText (NCLAT) (08) 112

Restoration Application No. 16 – 20 of 2026 in Company Appeal (AT) (Ins) No. 418 - 422 of 2024

2026-08-06

Justice Sharad Kumar Sharma, Indevar Pandey

Mr. Kumar Anurag Singh, Mr. Zain A. Khan, Mr. Dev Aaryan, Mr. Vishal Ganda

Sundeep Shah

Anil Kohli, Resolution Professional of Eastern Silk Industries Ltd. & Ors.

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Nature of Litigation

Restoration application in a company appeal.

Remedy Sought

Recall of the dismissal order and restoration of the company appeal.

Filing Reason

Delay in refiling due to the clerk's family emergency.

Previous Decisions

The appeal was dismissed for want of prosecution due to absence of counsel.

Issues

Whether the delay in refiling should be condoned Whether the appeal should be restored

Submissions/Arguments

Appellant argued that the absence was due to counsel's prior engagement Respondents contended that the reasons for delay were not credible

Ratio Decidendi

The Tribunal held that sufficient cause was established for the absence of counsel, warranting the condonation of delay and restoration of the appeal.

Judgment Excerpts

The appellant seeks recall of the order dated 31.01.2026 that was rendered in Company Appeal (AT) (Ins) No. 418 - 422 of 2024, dismissing the company appeal for want of prosecution. We are of the view that there is merit in contention of appellant regarding the explanation of delay in refiling. Accordingly, we recall the order dated 13.01.2026 consequently, the Restoration Application No. 16 – 20 of 2026 would stand allowed.

Procedural History

The appellant filed a restoration application after the dismissal of the company appeal for want of prosecution due to absence of counsel. The application was initially defective, leading to further filings explaining the delay.

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