NCLAT held that an application is considered filed when presented at the registry, not when it is numbered.
National Company Law Appellate Tribunal (NCLAT), Principal Bench comprising Justice Ashok Bhushan (Chairperson), M. Satyanarayana Murthy (Judicial Member) and Barun Mitra (Technical Member) was hearing an appeal and held that an application is considered filed when presented at the registry, not when it is numbered, thus affirming the NCLT's decision to appoint a Resolution Professional based on SBI's earlier filing date, initiating the interim moratorium under Section 96 of the IBC.
The National Company Law Appellate Tribunal (NCLAT) adjudicated on three appeals stemming from a National Company Law Tribunal (NCLT) order dated June 6, 2022. The NCLT had appointed a Resolution Professional under Section 99 of the Insolvency and Bankruptcy Code (IBC) to submit a report on applications filed under Section 95 by the State Bank of India (SBI) and Section 94 by Krishan Kumar Basia, the Personal Guarantor of M/s Gee Ispat Private Limited.
The primary issue addressed by NCLAT was whether the filing date of an application is determined by its presentation at the registry or its subsequent numbering. SBI filed its application on October 1, 2021, and it was numbered on February 18, 2022, while Basia's application, filed on October 25, 2021, was numbered earlier on December 22, 2021.
NCLAT upheld the NCLT's decision, emphasizing that "filing" within the meaning of the IBC and relevant rules is complete upon presentation at the registry, not contingent upon the application being numbered. This interpretation aligns with Rule 2(14) and Rule 23 of the NCLT Rules, which define "filed" as deposited at the registry's filing counter, thereby initiating statutory consequences such as the interim moratorium under Section 96 of the IBC.
In conclusion, NCLAT ruled that SBI’s application was filed earlier than Basia's, irrespective of the numbering date, thus upholding the NCLT’s order to appoint a Resolution Professional. This judgment clarifies that the filing date is critical for determining the commencement of statutory protections and procedural actions under the IBC.
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