NCLAT condones 12-day delay in appeal filing due to appellant's hospitalization; appeal against NCLT order admitted

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Published 29 October 2026

Case: Shripal Morakhia - Suspended Director ... v. Bhrugesh Amin Rp - Smaash Entertainment ...
Decided: 26 October 2026
Statutes: Insolvency and Bankruptcy Code, 2016 — s.12A
Source: Indian Kanoon (NCLAT)

Bottom Line Up Front (BLUF)

In Shripal Morakhia v. Bhrugesh Amin Rp, the NCLAT on 2026-10-26 condoned a 12-day delay in filing an appeal, citing the appellant's hospitalization. The appeal challenges an NCLT Mumbai order dated 17.02.2026, alleging material irregularity and natural justice violations in the Corporate Insolvency Resolution Process (CIRP) regarding a Section 12A settlement proposal.

Ratio Decidendi · Legal Principle Established

A delay in filing an appeal may be condoned if a sufficient cause, such as hospitalization of the appellant, is demonstrated, especially when the respondent has no objection to allowing the application for condonation.

Practice & Procedural Impact for Advocates

Advocates should promptly file condonation applications with clear reasons for delay, supported by evidence. Litigants should be prepared to argue against or concede condonation based on the merits and potential for immediate hearing.

Key Legal Takeaways

1Delay in filing an appeal can be condoned on grounds of appellant's hospitalization.
2Respondent's consent can expedite the condonation process.
3Appeals against NCLT orders concerning CIRP irregularities and natural justice violations are admissible.

The Legal Issue This case involves an appeal filed by Shripal Morakhia, a suspended director of the Corporate Debtor, against an order dated 17.02.2026 passed by the National Company Law Tribunal (NCLT), Mumbai Bench. The appellant sought condonation of a 12-day delay in filing the appeal, citing hospitalization as the reason. The core of the appeal challenges the NCLT's decision to reject the appellant's application (IA No. 1985/2025) which sought rejection of a plan approval application and consideration of the appellant's settlement proposal under Section 12A of the Insolvency and Bankruptcy Code, 2016. The appellant alleges material irregularity in the Corporate Insolvency Resolution Process (CIRP) and infraction of natural justice principles, claiming he was denied an opportunity to contest the grounds for rejection.

Court's Reasoning The National Company Law Appellate Tribunal (NCLAT) considered the application for condonation of delay. The appellant submitted that the delay of 12 days was due to his hospitalization. The learned Senior Counsel for the respondent stated that they had no objection to allowing the application for condonation, provided the appeal was heard on the same day. Accepting this, the NCLAT allowed the application for condonation of delay, thereby admitting the appeal for hearing. The NCLAT noted that the Resolution Plan submitted by M/s. Nazara Technologies Limited was approved by the Committee of Creditors (CoC) with a 99.59% vote, and a Letter of Intent was issued to the successful resolution applicant.

What Follows The NCLAT has allowed the application for condonation of delay, meaning the appeal is now formally admitted. The matter will proceed to a full hearing on the merits of the appeal, where the appellant will present arguments regarding the alleged material irregularity in the CIRP and the violation of natural justice principles by the NCLT in rejecting his Section 12A settlement proposal. The respondent will have the opportunity to counter these arguments.