The delay in filing Appeal u/s 42 of IBC can be condoned even in the absence of the application u/s 5 of Limitation Act, 1963 but there shall at least be an oral prayer for condonation of delay, the delay cannot be condoned Suo-Moto – Southern Power Distribution Company of Telangana Ltd. Vs. Priyadarsini Ltd. Rep by Liquidator, Mr. Krishna Mohan Gollamudi – NCLT Hyderabad Bench
The NCLT Hyderabad Bench held that there is no bar to exercise by the Court/Tribunal of its discretion to condone delay, in the absence of a formal application it is not always necessary to file an application for condonation of delay before the Court or Tribunal, and delay can be condoned even in the absence of the Application under Section 5 of Limitation Act. Therefore, there shall at least be an oral prayer for condonation of delay, stating the reasons for not filing the Appeal within 14 days. Therefore, when the Application itself is being bared by limitation and for condonation of delay not even a single ground is pleaded, the delay cannot be condoned ‘Suo-Moto’.