Background and Case Details: NCLAT Rejects Arguments Against E-Filing as Filing Date
In a recent decision, the National Company Law Appellate Tribunal (NCLAT) clarified key aspects regarding the limitation period for filing appeals. The Tribunal ruled that the limitation period should be calculated from the date of e-filing of the appeal, even if defects are present at that time. This means that re-filing the appeal after curing defects does not reset the limitation period.
The NCLAT’s decision, delivered by Chairperson Justice (retired) Ashok Bhushan and Technical Member Barun Mitra, emphasizes that a larger Bench of the Tribunal had already established that re-filing an appeal after curing defects does not constitute a fresh filing. The date of e-filing, not the date of re-filing, should be used to determine compliance with the limitation period.
The Tribunal referenced a 2022 notification that explicitly states: “Limitation shall be computed from the date of e-filing.” This notification aligns with previous rulings, reinforcing that limitation periods should not be re-calculated based on defect correction.
Additionally, the NCLAT ruled that an appeal cannot be dismissed solely for the appellant’s failure to apply for a certified copy of the order under appeal. With the widespread availability of web-copies of orders from the National Company Law Tribunals (NCLTs) and other adjudicating authorities, the Tribunal acknowledged that litigants often rely on these digital copies rather than certified copies.
This decision came while dismissing two interlocutory applications challenging the maintainability of an appeal. The applicants argued that the appeal’s limitation period had expired by September 27, 2023, and that a defect-free appeal was only filed on January 16, 2024. They contended that the September 25 e-filing, which included defects and was missing essential documents, should not be considered as the official filing date.
However, the NCLAT rejected this argument, emphasizing that the Delhi High Court’s ruling on this issue pertained to specific rules applicable only to the High Court. The NCLAT’s decision reaffirmed that the date of e-filing is the correct date for limitation purposes, irrespective of the defects present at the time of filing.
The Tribunal’s judgment aligns with a similar ruling made earlier in the year, where it determined that the effective date of an insolvency application against personal guarantors is the date of filing, not the date when the application is defect-free.
The matter was represented by Advocates Anuj Bhandari and Gaurav Jain for the appellant, and Senior Advocate Sanjeev Sen along with Advocates Ashok Kumar Jain, Amit Kasera, Anjali Singh, and Pragyan Mishra for the respondent/applicant. The main appeal is scheduled for hearing on August 22.
(With inputs from agency)
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