B. Mahesh & Ors. v. Abhay Narayan Manudhane & Ors.

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The Tax Publishers 2025 TaxPub(CL) 1503 (NCLAT- New Del)

INSOLVENCY AND BANKRUPTCY CODE, 2016

Section 61

There is a need to bring about finality and certainty in litigation, especially in IBC which is willy-nilly a time-bound exercise. The light-weight explanations given to cover up the lack of diligence on the part of the Applicant and their counsel in curing the defects is not justifiable.

Condonation of delay - Delay due to repetitive defects marked by Registry - Whether the delay contravenes the timeliness of the I & B Code - Allowability thereof

The appellant submitted that despite the clearing of defects by the Appellants, on a few occasions, the subsequent defect sheets shared by the Registry continued to reflect older defects as marked by the Registry. All other defects had duly been cured by the counsel for the Appellants and it was only one defect that needed to be cured which was also cleared on the same day. This had resulted in confusion and needless delay in clearing of the matter. Held: There were no unavoidable or exceptional circumstance had come in the way of the Applicant which prevented them from refiling of their application in a timely manner. He had unmistakeably failed to convincingly demonstrate sufficient cause for condonation of 125 days delay. Hence, sufficient grounds had not been made out to justify reason for delay in curing defects

REFERRED : CA Ramachandra Dallaram Choudhary v. Adani Infrastructure & Developers Pvt. Ltd. in Civil Appeal No. 5106 of 2023, Mahendra C. Shah v. Bank of Baroda in CA(AT)(Ins)No. 2266 of 2024, Govardhan Nirman Pvt. Ltd. v. Vaibhav Khandelwal & Anr. in CA(AT)(Ins) No. 1524 of 2024 : 2025 TaxPub(CL) 243 (NCLAT- New Del), Dhanlaxmi Bank Limited v. Ritu Rastogi and Others in CA(AT)(Ins)No. 2131 of 2024 : 2025 TaxPub(CL) 581 (NCLAT-New Delhi) Employees Provident Fund Organisation v. Buildwell Pvt. Ltd. in CA (AT)(Ins). No. 1700 of 2024 : 2025 TaxPub(CL) 608 (NCLAT- New Del)

FAVOUR : Application rejected

A.Y. :

IN THE NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI

[JUSTICE ASHOK BHUSHAN] CHAIRPERSON & [BARUN MITRA] MEMBER (TECHNICAL)

B. Mahesh & Ors. v. Abhay Narayan Manudhane & Ors.

I.A. No. 1527 of 2025 in Company Appeal (AT) (Ins) No. 419 of 2025

21 August, 2025

Appellant by: Seshagiri Vadlamani and Ananya Kukreti, Advocates

Respondents by: Meghna Rao and Harshit Goel, Advocates for Respondent no. 1 .

Varsha Banerjee and Aishwarya Nabh, Advocates for Respondent no. 5 .

ORDER

Barun Mitra, Member (Technical)

The present is a case where the Applicant has filed IA No. 1585 of 2025 praying for condonation of 13 days of delay in filing of CA (AT)(Ins) No. 419 of 2025 and IA No. 1527 of 2025 praying for condonation of 125 days in refiling of the said Appeal.

2. For the present, we propose to deal with I.A. No. 1527 of 2025 for condonation of delay in refiling.

3. The Applicant has offered the following explanation in paragraphs 3 to 6 in IA No. 1527 of 2025 justifying the refiling delay which is as extracted below : -

3. That a delay of 125 days has been occasioned in the refiling of the captioned appeal of the Appellants since the original date of defects being notified to the Applicants.