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CS Professional · Insolvency and Bankruptcy - Law and Practice · Adjudication and Appeals for Corporate Persons

Kaveri Steels Pvt Ltd's promoter receives an NCLAT order on 1 June and files an appeal before the Supreme Court on day 52, showing that he was in hospital with a serious illness and so was prevented by sufficient cause. What is the position under the Code?

The Supreme Court may allow the appeal if satisfied that sufficient cause prevented timely filing, because the delay of 7 days is within the further 15 days permitted. Section 62(2) gives the Supreme Court this power, not the NCLAT.

  1. AThe Supreme Court cannot entertain it because only 45 days are available in any case
  2. BThe Supreme Court may allow it, being within the further 15 days, if satisfied about sufficient causeCorrect
  3. CThe NCLAT must condone the delay before the Supreme Court can hear it
  4. DThe Supreme Court may allow it only if the delay does not exceed 30 days

Explanation

Section 62(2) lets the Supreme Court, if satisfied that sufficient cause prevented filing within 45 days, allow filing within a further period not exceeding fifteen days. Day 52 is 7 days late, within that 15-day window. The option saying no condonation exists ignores section 62(2).

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