Dismissing the National Spot Exchange’s (NSEL) plea to tolerate the delay in filing its appeal against the dismissal of its Rs 673.85 crore claim from heavily indebted Dunar Foods, the Supreme Court said on Tuesday that the courts failed did not have the power to do so, because it would amount to a law.
A bench led by Judge MR Shah said Parliament had made no exceptions to a situation in which limiting the filing of an appeal beyond a legal time limit could be tolerated.
He stated that there may be situations where a party may have genuine reasons like illness / accident and is not able to appeal within the statutory limitation period, and even within the appeal period. maximum prolonged that could be tolerated.
“… This may cause difficulties, however, unless Parliament has provided an exception by statute, the limitation period must apply. Such powers belong only to Parliament and the Legislature. The courts have no jurisdiction and / or authority to make an exception. If the courts provided for an exception, it would amount to legislating, which in turn could insert the provision into law, which is not permissible, ”the Supreme Court said.
Dismissing the NSEL’s plea for the delay on the grounds that the amount involved is huge, the highest court said: “… the Constitution of India.
He also said that NCLAT had no jurisdiction and / or power to tolerate the delay of more than 15 days.
In this case, NSEL preferred to appeal to NCLAT after 44 days, which exceeded the maximum period of 15 days that could be tolerated under Article 61 (2) of the IBC. The appeal court dismissed the appeal on the grounds of limitation, finding that it had no jurisdiction and / or power to tolerate the delay exceeding 15 days.
The NCLT had admitted SBI’s plea to initiate insolvency proceedings against Dunar Foods on the grounds that the debtor company had taken credit limits by mortgaging the goods held in NSEL’s warehouses.
In response to the public announcement by the Interim Resolution Professional (IRP) to invite claims from creditors, NSEL submitted a claim of 673.85 crore. In addition, he had informed the IRP of a decree which had been passed against PD Agro for Rs 633.66 crore, as the ED discovered that Rs 744 crore had been diverted by PD Agro Processors to Dunar Foods.
The IRP had rejected NSEL’s request on the grounds that there was no contractual relationship between the cash exchange and Dunar Foods. The NCLT had upheld the IRP’s decision not to include the appellant’s claim as a creditor. NSEL then filed an appeal with NCLAT after 44 days.