NCLAT Dismisses Time-Barred Appeal Under IBC Section 61 as per Supreme Court Verdict on Non-Extendable Limitation

The NCLAT dismissed a time-barred appeal filed under Section 61 of the Insolvency and Bankruptcy Code, holding that the limitation period is non-extendable beyond the prescribed 45 days, in line with the Supreme Court’s verdict.

On 2 June 2025, the National Company Law Appellate Tribunal (NCLAT), New Delhi Bench, comprising Justice Rakesh Kumar Jain (Judicial Member) and Mr. Barun Mitra (Technical Member), reviewed a company appeal and a connected interlocutory application. The Tribunal observed that the limitation period for filing an appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016, must be computed from the date of the order, not from the date of knowledge. It further held that any delay beyond the statutory 30 days, plus the non-extendable 15-day grace period, is not condonable, reaffirming the principles laid down by the Supreme Court in V. Nagarajan v. SKS Ispat and National Spot Exchange Ltd. v. Anil Kohli.

The National Company Law Appellate Tribunal (NCLAT) dealt with an application filed by the appellant seeking condonation of delay in filing an appeal against the order dated 05.03.2025, by which the Adjudicating Authority had dismissed an application for extension of the Corporate Insolvency Resolution Process (CIRP) and ordered liquidation. The appellant claimed to have obtained knowledge of the impugned order only on 15.03.2025 and contended that the delay of 14 days from the date of knowledge was within the permissible grace period of 15 days provided under Section 61(2) of the Insolvency and Bankruptcy Code, 2016.

The appeal was e-filed on 28.04.2025. The NCLAT, after hearing the parties and examining the records, held that the limitation period under Section 61 begins from the date of the order, i.e., 05.03.2025, and not from the date of knowledge. Counting from 06.03.2025, the total time consumed was 54 days, exceeding both the initial 30-day limitation period and the 15-day grace period by 9 days.

The Appellate Tribunal rejected the appellant's reliance on the Supreme Court decision in Tata Steels Limited v. Raj Kumar Banerjee and Others, REEDLAW 2025 NCLAT Del 05527 and reaffirmed the binding precedent laid down in V. Nagarajan v. SKS Ispat and Power Limited and Others, REEDLAW 2021 SC 10518, where the Supreme Court had clearly held that limitation under Section 61 of the IBC must be reckoned from the date of the order, and not from the date of knowledge. The Tribunal further relied on the Supreme Court’s ruling in National Spot Exchange Limited v. Anil Kohli, Resolution Professional for Dunar Foods Limited, REEDLAW 2021 SC 09526, which clarified that the grace period of 15 days beyond the statutory 30-day limitation is non-extendable, even by the Supreme Court under Article 142 of the Constitution.

In light of these settled legal principles, the NCLAT found no merit in the condonation application and dismissed it. Consequently, the appeal was also dismissed as being barred by limitation.

Mr. Kunal Cheema, Mr. Sanket Gupta and Shubham C., Advocates, represented the Appellant.

There was no appearance on behalf of the Respondent.

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REEDLAW 2025 NCLAT Del 06505