# In the matter of Electro Mech Engineers Vs. Electrosteel Steels Ltd. CA (AT) No. 602-2018

> NCLAT judgment dated 2018-10-04. Citation: TCN-2018-NCLAT-00092. Several appeals (Company Appeal (AT) (Insolvency) No. 602, 603, 604, and 605 of 2018) were…

- **Court:** NCLAT
- **Order date:** 4 Oct 2018
- **Citation:** TCN-2018-NCLAT-00092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/electro-mech-engineers-vs-electrosteel-steels-ltd-ca-968de58f

## Summary

### Background

Several appeals (Company Appeal (AT) (Insolvency) No. 602, 603, 604, and 605 of 2018) were filed with delays exceeding 90 days against an order dated April 17, 2018. A related appeal, 'Naskar's Delco Mechanical Engineering Pvt. Ltd.’moved before this Appellate Tribunal in 'Company Appeal (AT)(Insolvency) No. 478 of 2018’after delay of 15 days. The Appellate Tribunal had previously passed an order on August 24, 2018, regarding the delay in the Naskar's Delco appeal, noting a 91-day delay from the order date and a 50-day delay from the date of knowledge. The tribunal found the explanation for the delay vague and unsubstantiated.

## Facts

Electro Mech Engineers, Khurana Engineering Company, Electronic India, and Khenco Cranes and Machineries filed appeals against Electrosteel Steels Ltd. & Ors. The appeals were delayed by more than 90 days from the order dated April 17, 2018. 'Naskar's Delco Mechanical Engineering Pvt. Ltd.’ had previously filed an appeal (Company Appeal (AT)(Insolvency) No. 478 of 2018) with a 15-day delay, which was addressed in an order dated August 24, 2018. The tribunal noted a 91-day delay from the original order date and a 50-day delay from the date of knowledge in the 'Naskar's Delco' case. A resolution plan submitted by M/s. Vedanta Ltd. had already been approved by the Committee of Creditors, Adjudicating Authority, and the Appellate Tribunal in a judgment dated August 10,

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## Issues and analysis

### Issue 1: Whether the appeals should be entertained …

**Ratio:** Appeals must be filed within a reasonable time frame, and significant delays without

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**Reasoning:** The tribunal found the explanations for the delays in filing the appeals to be vague and

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**Interpretation:** The interpretation emphasizes the importance of adhering to timelines for

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**Application:** The ratio and reasoning were applied to the facts of the case, where the delays

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Electro Mech…
- **Respondents:** Electrosteel…

## Timeline

- **2018-04-17 — Original Ord…**: Date of the order against…
- **2018-07-01 — Date of Knowledge…**: Date from which the appellant in 'Naskar's Delco' case claimed to have knowledge of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(2) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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