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CS Professional · Insolvency and Bankruptcy - Law and Practice · Insolvency Resolution of Individuals and Partnership Firms

Kiran Traders, a partnership firm, wants to appeal against a DRT order under the IBC, but files 40 days after the order, saying the partners were prevented by sufficient cause. The DRAT is satisfied about sufficient cause. What can the DRAT do?

The DRAT can allow the appeal. Section 181 gives thirty days to appeal and permits a further period not exceeding fifteen days where sufficient cause is shown. Forty days falls within the 45-day outer limit, so the delay can be condoned.

  1. AAllow the appeal to be filed, since 40 days is within thirty plus a further fifteen daysCorrect
  2. BRefuse, because delay beyond thirty days cannot be condoned
  3. CAllow it, as the DRAT may condone any delay it considers fair
  4. DRefuse, because the appeal must be filed before the NCLAT

Explanation

Section 181(2) allows the DRAT, if satisfied of sufficient cause, to permit filing within a further period not exceeding fifteen days after thirty days. Thirty plus fifteen is 45 days, so 40 days is condonable. Delay beyond 45 days could not be condoned.

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