DRAT Kolkata Refuses to Condon 910-Day Delay, Dismisses ASREC Appeal as Time-Barred

February 4, 2026 : The Debts Recovery Appellate Tribunal has declined to condone a delay of 910 days in filing an appeal by ASREC (India) Limited, holding that the appellant failed to establish “sufficient cause” under Section 5 of the Limitation Act.

The order was passed by Justice Anil Kumar Srivastava while adjudicating an application seeking condonation of delay in challenging a decision dated 8 October 2021 of the Debts Recovery Tribunal. The appeal was filed only on 26 November 2024, along with an application for condonation of delay.

The appellant argued that the delay was attributable to circumstances beyond its control, including the extension of limitation granted by the Supreme Court during the COVID-19 pandemic and the departure of personnel handling the matter. It was submitted that steps to pursue the appeal were initiated only in October 2024 after a new official assumed charge.

Rejecting these submissions, the Appellate Tribunal emphasised that condonation of delay is a discretionary relief that requires a clear and satisfactory explanation demonstrating diligence and absence of negligence. It noted that the appellant failed to provide basic particulars regarding the personnel who had allegedly left the organisation or when the new official took over. Even after accounting for the pandemic-related extension up to 1 June 2022, no convincing explanation was furnished for the subsequent delay.

The Tribunal reiterated that vague and general assertions cannot constitute “sufficient cause” and that the burden lies squarely on the applicant to explain the delay with specificity. It further held that condonation cannot be granted merely on equitable considerations such as alleged loss of interest to claimants, as this does not satisfy the statutory requirement.

Concluding that the appellant had failed to discharge its burden, the Tribunal dismissed the condonation application and, consequently, rejected the appeal as barred by limitation.

Cause Title: ASREC (India) Ltd. v. M/s Vishnutek Engineers Pvt. Ltd. & Ors.
Case No.: Appeal Dy. No. 1022 of 2024
Coram: Justice Anil Kumar Srivastava, Chairperson