Facts
The Appellants challenged the NCLT’s orders dated 22 July 2025 concerning proceedings under Sections 241 and 244 of the Companies Act, 2013. In Company Appeal (AT) No. 184 of 2026, the NCLT rejected the Appellants’ application seeking waiver of the eligibility requirements under the proviso to Section 244 and consequently dismissed the company petition at the threshold. In the connected appeal, Company Appeal (AT) No. 185 of 2026, the NCLT dismissed as infructuous an application challenging the maintainability of the company petition, following dismissal of the waiver application.
Source reference: paras. 1–4Both appeals were originally e-filed on 04 September 2025, within the prescribed limitation period. The Registry communicated defects on 08 September 2025 and required rectification within seven days under Rule 26 of the NCLAT Rules, 2016. The Appellants ultimately re-filed the appeals after substantial delay, with the final re-filing recorded as having taken place on 30 April 2026, resulting in a delay of approximately 227 days. The Appellants sought condonation of the re-filing delay, relying principally on the continuing medical problems of both Appellants and the alleged difficulties in coordinating with counsel, curing defects and executing documents.
Source reference: paras. 4, 5–20, 23Issues
Whether the Appellants had shown sufficient cause for condonation of the substantial delay in re-filing the appeals after removal of Registry defects under Rule 26 of the NCLAT Rules, 2016?
Source reference: paras. 22, 29–34Whether the medical records and circumstances relied upon by the Appellants adequately explained the entire period of delay from 15 September 2025 to 30 April 2026?
Source reference: paras. 30–34Whether the precedents relied upon by the Appellants justified condonation of the delay in the facts of the present case?
Source reference: paras. 35–36Law Applied
The Tribunal applied Rule 26(2) of the NCLAT Rules, 2016, which requires defects in an appeal or document to be cured within seven days of its return by the Registry; failure to do so permits the matter to be placed before the Registrar for appropriate orders.
Source reference: para. 24Rule 26(3) empowers the Registrar to allow reasonable additional time or extend the time for compliance where sufficient cause is shown, while Rule 26(4) permits refusal to register the appeal where the party fails to take steps for removal of defects.
Source reference: para. 24The Tribunal further applied the principle that condonation of re-filing delay is discretionary and requires a satisfactory, bona fide and sufficiently comprehensive explanation for the entire period of delay.
Source reference: no citationIt distinguished Ajit Singh v. Telemax Links India Pvt. Ltd., where a specifically explained two-day delay was condoned, and Brahampal @ Sammay v. National Insurance Co., where illness was considered in the context of a comparatively short 45-day delay.
Source reference: paras. 35–36Reasoning
Although the appeals had been instituted within limitation, the Appellants were required to cure the Registry defects within seven days, i.e., by 15 September 2025.
Source reference: para. 23The Tribunal found that the medical records relied upon consisted principally of outpatient consultations and did not establish hospitalisation, continuous incapacity or an inability to undertake the necessary litigation formalities throughout the entire period up to April 2026.
Source reference: paras. 30–32The first relevant outpatient consultation of Appellant No. 1 was dated 19 December 2025, more than three months after the deadline, and the records did not account for the intervening period or explain why the defects could not have been cured earlier.
Source reference: para. 31The Tribunal held that the initial timely filing did not, by itself, excuse a prolonged and unexplained delay in re-filing, particularly where no continuous sequence of steps or circumstances demonstrating due diligence was shown. The decisions relied upon by the Appellants were distinguished because they involved materially shorter delays supported by specific explanations, unlike the 227-day delay in the present case.
Source reference: paras. 32–36Holding
The Tribunal held that the Appellants failed to establish sufficient cause or due diligence for the substantial delay in re-filing the appeals. The medical material did not satisfactorily explain the entire period from 15 September 2025 to 30 April 2026, and the cited precedents were found inapplicable on their facts.
Accordingly, I.A. Nos. 3268 and 3269 of 2026 seeking condonation of delay were dismissed, and Company Appeal (AT) Nos. 184 and 185 of 2026 were also dismissed on the ground of delay in re-filing.
Source reference: para. 38Acts & Sections Cited
3 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Companies Act, 20133
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Naresh Gupta & Anr. & Ors.vsAnupam Mahajan & Ors.
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