On January 3rd, the Supreme Court reminded government agencies like the NHAI of the importance of adhering to procedural timelines, criticizing delays in case filings. The NHAI’s appeal regarding an insolvency case was dismissed due to a 295-day delay. The court highlighted the need for introspection and better procedural discipline among governmental bodies.
New Delhi: The Supreme Court on Friday (Jan 3rd) issued a stern reminder to government authorities, including the National Highways Authority of India (NHAI), regarding excessive delays in filing appeals. Chief Justice of India (CJI) Sanjiv Khanna, while hearing an appeal by the NHAI, stressed the need for government agencies to adhere to procedural timelines.
During the hearing, the Chief Justice remarked:
“I think everyone is adhering to the time schedule in almost 95 per cent of the cases. Why should the government of India not be able to adhere to it? There is something wrong somewhere… Introspection is necessary.”
The case, involving the dismissal of the NHAI’s appeal due to a 295-day delay, prompted the Supreme Court to question the reasons for such procedural lapses.
The appeal by the NHAI challenged an order by the National Company Law Appellate Tribunal (NCLAT) in an insolvency case under the Insolvency and Bankruptcy Code (IBC).
- The NHAI, acting as an operational creditor, contested a resolution plan that introduced new terms and allegedly disregarded its interests.
- The NCLAT dismissed the appeal due to the delay in filing, citing non-compliance with established timelines.
Solicitor General Tushar Mehta, representing the NHAI, assured the court of corrective action, stating:
“I undertake to speak to the chairman. Let him investigate why there was lethargy or otherwise.”
The resolution professional had directed the NHAI to file its claims under Form F (proof of claim by any other stakeholder), which the authority argued was inadequate to protect its interests.
The bench, also comprising Justice Sanjay Kumar, refrained from examining the merits of the case due to the delay, ruling the plea as time-barred. The court emphasized the importance of procedural discipline, particularly in matters involving government authorities.
Case Title: NATIONAL HIGHWAY AUTHORITY OF INDIA Versus IVRCL CHENGAPALLI TOLLWAYS LTD AND ORS| Diary No. 46628-2024
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