# In the matter of Shyam Industries Vs. R.L. Steel Energy Ltd. CA (AT) No. 111-2017

> NCLAT judgment dated 2017-10-06. Citation: TCN-2017-NCLAT-00107. The appeal was filed against an order dated 24th May 2017, passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 6 Oct 2017
- **Citation:** TCN-2017-NCLAT-00107
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shyam-industries-vs-rl-steel-energy-ltd-ca-1848a0e5

## Summary

### Background

The appeal was filed against an order dated 24th May 2017, passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad. The appeal was filed beyond the prescribed period of 30 days from the date of receipt of the order, leading to an application for condonation of delay. The appellant argued that the Appellate Tribunal was closed during summer vacations, causing a delay of 11 days even after excluding the vacation period. The appellant contended that the impugned order was passed without considering that the notice dated 15th January 2017, under Section 8(1) of the Insolvency and Bankruptcy Code, 2016, was not issued by the respondent but by a legal firm. The respondent's counsel accepted this.

## Facts

Shyam Industries Ltd. filed an appeal against an order passed by the Adjudicating Authority (NCLT), Ahmedabad, on May 24, 2017. The appeal was delayed by 11 days after excluding summer vacation period. The main ground for the appeal was that the notice under Section 8(1) of the Insolvency and Bankruptcy Code, 2016, was not issued by the Operational Creditor (R. L. Steel Energy Ltd.) but by their legal firm, RT Legal, Advocates & Consultants. The appellant argued that the notice was invalid because it was not issued by the Operational Creditor directly or by an authorized representative holding a position within the company. The respondent's counsel accepted that the notice was issued by the legal firm. A similar case, Uttam Galva Steels Limited v. DF Deutsche

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## Issues and analysis

### Issue 1: Whether the delay of 11 days in …

**Ratio:** The court has the discretion to condone

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**Reasoning:** The court heard the learned counsel for the parties and was satisfied with the

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**Interpretation:** The court interpreted the circumstances surrounding the delay, considering the

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**Application:** The court applied its discretion to condone the 11-day delay, considering the

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Respondents:** Shyam Industries…; R. L. Steel…

## Timeline

- **2017-01-15 — Notice D…**: Notice dated 15th January 2017 issued under sub-section (1) of Section 8 of the…
- **2017-02-18 — Subsequent Not…**: Another notice was issued on 18th…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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