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

Rajhans Steels Ltd was aggrieved by an NCLT order dated 1 April. Its appeal was filed before the NCLAT on the 40th day, with an explanation that the board meeting to authorise the appeal was delayed. Assuming the NCLAT is satisfied that sufficient cause existed, what is the position under Section 61(2)?

The NCLAT may entertain the appeal. The delay is ten days beyond the thirty-day period, and the proviso to Section 61(2) allows condonation for sufficient cause up to a maximum of fifteen days. Since ten days is within that limit and sufficient cause is shown, condonation is permissible.

  1. AThe NCLAT may entertain the appeal because the delay is within the extra fifteen days permittedCorrect
  2. BThe NCLAT must reject it because no delay is condonable under the IBC
  3. CThe NCLAT may condone the delay for any length if sufficient cause exists
  4. DThe NCLAT must refer the question of condonation to the NCLT

Explanation

The thirty-day period ended on the 30th day, so the delay is ten days. The proviso to Section 61(2) lets the NCLAT allow filing after thirty days for sufficient cause, but the extra period cannot exceed fifteen days. Ten days is within that cap.

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