In spite of remedy available under Sec. 61 of IBC, time spent in Writ Petition before High Court against NCLT order and thereafter in SLP before Supreme Court cannot be excluded u/s 14 of Limitation Act, 1963 – V. Ganesan Erst. Liquidator of Kamachi Industries Ltd. v. Prudent ARC Ltd. – NCLAT Chennai

In this case, the Appellant (liquidator) challenged the NCLT order in writ petition before High Court and thereafter challenged the decision of High Court to use alternative efficacious remedy, in SLP before Supreme Court. After SLP was dismissed, he challenged the NCLT order in NCLAT jurisdiction urging exclusion on time u/s 14 of Limitation Act. Hon’ble NCLAT held that: (i) The order of the Adjudicating Authority may be, in the opinion of the Appellant, illegal but for that matter the Appellant has to prefer an appeal and not the writ petition and then a special leave petition before the Hon’ble Supreme Court even against the order of the Hon’ble High court by which the Appellant was relegated to avail his remedy of appeal and also granted stay till the appeal is filed. (ii) No merit in the submission of the Appellant for excluding the period under Section 14 of the Act and since the appeal has been filed after the period of 53 days from the date of passing of the impugned order.

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