NCLAT Upholds Condonation of 26 days of Delay in filing of Report u/s 106 of I & B Code by RPl due to delayed submission of Repayment Plan by Personal Guarantor

The National Company Law Appellate Tribunal (NCLAT) has upheld the condonation of a 26-day delay in the filing of a report by a Resolution Professional (RP) under Section 106 of the Insolvency and Bankruptcy (I&B) Code. The report was related to the repayment plan in a personal guarantor's insolvency case. The RP had explained that the delay was caused because the personal guarantor themselves had delayed the submission of their repayment plan. The NCLAT, accepting this as a reasonable cause, found that the delay was not intentional on the part of the RP. By condoning the minor delay, the appellate tribunal has taken a pragmatic approach, ensuring that the insolvency proceedings against the personal guarantor are not derailed due to a procedural issue that was caused by the guarantor's own actions.