# In the matter of Koshy Varghese Vs.John Varghese & Anr. CA(AT)Insolvency) No. 696-2019

> NCLAT judgment dated 2019-07-10. Citation: TCN-2019-NCLAT-00461. The case involves an appeal against the admission of an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 10 Jul 2019
- **Citation:** TCN-2019-NCLAT-00461
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/koshy-varghese-vsjohn-varghese-anr-caatinsolvency-no-696-2019-9ff85dd3

## Summary

### Background

The case involves an appeal against the admission of an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code') against 'M/s. Value Designbuild Private Limited' ('Corporate Debtor'). The application was filed by Mr. John Varghese through his authorised Power of Attorney Holder Smt. M. Jamuna Rani. The appeal was preferred by the Promoter, who claimed readiness to pay the admitted dues to the Respondent-'Financial Creditor'. The matter was previously decided under Section 12A and placed before the Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench, for withdrawal of application under Section 7 of the 'I&B Code'.

## Facts

Mr. John Varghese, through his authorised Power of Attorney Holder Smt. M. Jamuna Rani, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against 'M/s. Value Designbuild Private Limited' ('Corporate Debtor'). The Adjudicating Authority admitted this application via an order dated 10th January, 2019. The Promoter of the Corporate Debtor preferred an appeal against the admission, stating a willingness to pay the admitted dues to the 'Financial Creditor'. The appeal was filed with a delay of 112 days. The matter had previously been decided under Section 12A and placed before the Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench, for withdrawal of the Section 7 application. The relevance of the delay is that it impacts

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## Issues and analysis

### Issue 1: Whether the Appellate Tribunal has the jurisdiction to condone the delay of 112 days in filing the …

**Ratio:** The proviso to sub-section (2) of Section 61 of the Insolvency and Bankruptcy Code limits

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**Reasoning:** The Appellate Tribunal reasoned that, given the delay of 112 days and the limitations

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**Interpretation:** Section 61(2) of the IBC provides a limitation period for filing an appeal. The

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**Application:** The Appellate Tribunal applied the proviso to sub-section (2) of Section 61 to

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Koshy Var…
- **Respondents:** M/s. Value…; John Var…

## Timeline

- **2019-01-10 — Impugned Ord…**: Date of the impugned order admitting the application under Section 7 of the Insolvency…
- **2019-07-10 — Application Fi…**: Mr. John Varghese, through his authorised Power of Attorney Holder Smt. M. Jamuna Rani,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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