# In the matter of Sansar Investment & Finance Company Private Limited vs. Atlantic Spinning and Weaving Mills Limited

> NCLAT judgment dated 2026-03-16. Citation: TCN-2026-NCLAT-00111. The appeal concerns the condonation of delay in preferring an appeal under Section 42 of the…

- **Court:** NCLAT
- **Order date:** 16 Mar 2026
- **Citation:** TCN-2026-NCLAT-00111
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/sansar-investment-finance-company-private-limited-vs-atlantic-spinning-and-weavi-0baa7e0d

## Summary

### Background

The appeal concerns the condonation of delay in preferring an appeal under Section 42 of the I&B Code against the decision of the Liquidator rejecting the Appellant's claim. The Appellant sought to invoke Section 5 of the Limitation Act and Section 238A of the I&B Code to justify the delay.

## Facts

The Appellant, Sansar Investment & Finance Company Private Limited, filed an appeal against the order of the NCLT Hyderabad Bench dismissing its application for condonation of delay.

The appeal was filed under Section 42 of the I&B Code, challenging the Liquidator's rejection of the Appellant's claim.

The Appellant sought to invoke Section 5 of the Limitation Act and Section 238A of the I&B Code to condone a significant delay of 1616 days in filing the appeal.

The Liquidator rejected the Appellant's claim, and the communication of the rejection was sent to the Appellant via email on 19.02.2020.

The NCLT Hyderabad Bench dismissed the appeal as being barred by limitation on 04.09.2024.

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## Issues and analysis

### Issue 1: Whether Section 5 of the Limitation Act applies …

**Ratio:** Section 42 of the I&B Code is a self-contained provision regarding limitation, and

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**Reasoning:** The Tribunal reasoned that Section 42 provides a specific timeline for filing appeals

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**Interpretation:** The Tribunal interpreted Section 42 as a special provision that excludes the

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**Application:** The Tribunal applied this interpretation to the facts of the case, holding that

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## Parties

- **Judges:** Sharad Kumar…; Indevar P…
- **Appellants:** Sansar Investment…
- **Respondents:** Atlantic Spinning…
- **Other parties:** Sujata Chattopadhy…
- **Advocates:** Ankur…; Saket S…; +1 more

## Timeline

- **19.02.2020 — Rejection o…**: The Liquidator rejected the Appellant's claim, and the communication of the rejection was…
- **24.02.2020 — Appellant's K…**: The Appellant was conscious of his right of preference of an appeal under Section 42 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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