# In the matter of Directorate of Enforcement vs. Committee of Creditors & Ors.

> NCLAT judgment dated 2023-07-04. Citation: TCN-2023-NCLAT-00419. The Directorate of Enforcement filed an appeal against the Committee of Creditors & Ors.,…

- **Court:** NCLAT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLAT-00419
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/directorate-of-enforcement-vs-committee-of-creditors-ors-3ffc08a7

## Summary

### Background

The Directorate of Enforcement filed an appeal against the Committee of Creditors & Ors., seeking condonation of a 789-day delay in filing the appeal. The order being appealed was passed by the Adjudicating Authority on 14.12.2020. The appellant claims they only learned of the related party at the end of March 2023, prompting the appeal.

## Facts

The Directorate of Enforcement filed an appeal against the Committee of Creditors & Ors. The appeal was filed with a delay of 789 days. The order being appealed was passed by the Adjudicating Authority on 14.12.2020. The appellant claims they only learned of the related party at the end of March 2023, prompting the appeal. The appellant argued that the limitation period for filing the appeal should only begin when the appellant became aware of the related party, citing Section 17 of the Limitation Act. The respondent refuted this, arguing that the limitation period starts from the date the order was pronounced. The respondent cited a Supreme Court judgment in V.Nagarajan Vs. SKS Ispat & Power Ltd. & Ors. (2022) 2 SCC 244. The tribunal noted that similar

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## Issues and analysis

### Issue 1: Whether the delay of 789 days in filing the appeal by the Directorate of Enforcement should be …

**Ratio:** The ratio is based on the principle that delays in legal proceedings should be justified

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**Reasoning:** The court reasoned that the appellant's explanation for the delay was insufficient to

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**Interpretation:** The interpretation of the law is that the limitation period for filing an

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**Application:** The court applied this ratio to the specific facts of the case, noting that the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Directorate of…
- **Respondents:** Committee of…
- **Advocates:** Prateek…; Vaishnavi…; +7 more

## Timeline

- **2020-12-14 — Order by Adjudicating…**: The Adjudicating Authority passed…
- **2023-03-13 — Appeal F…**: The Appellant filed the…

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