Supreme Court Strikes Down NCLAT Order for Entertaining Time-Barred and Defectively Filed Appeal Without Certified Copy
- REEDLAW
- Aug 13
- 3 min read
REEDLAW Legal News Network reports: In a pivotal ruling, the Supreme Court struck down an NCLAT order that entertained a time-barred and defectively filed appeal, reiterating that the limitation period for filing an appeal under the Insolvency and Bankruptcy Code, 2016, commences from the date of pronouncement of the NCLT order, not its uploading. The Court further held that an appeal filed without a certified copy or a timely condonation application is incurably defective and barred by limitation.
The Supreme Court Bench, comprising Justice Sanjay Kumar and Justice Satish Chandra Sharma, while adjudicating an appeal, held that under the IBC, the limitation period for filing an appeal before the NCLAT begins from the date of pronouncement of the NCLT order, irrespective of the date of its uploading. It was further held that an appeal filed without a certified copy of the order or without a condonation of delay application within the prescribed period suffers from a fatal defect and cannot be entertained, as it is barred by limitation.
The Supreme Court allowed the appeal filed under Section 62 of the Insolvency and Bankruptcy Code, 2016, challenging the judgment dated 1 July 2024 of the National Company Law Appellate Tribunal (NCLAT) in Company Appeal (AT) (Insolvency) No. 1308 of 2023. The matter arose from the order dated 23 June 2023 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, approving the resolution plan submitted by the successful resolution applicant. The Court confined its decision to a technical ground, holding that the appeal before the NCLAT was barred by limitation and defectively instituted. It was noted that Section 61(2) of the IBC prescribes a strict appeal period of 30 days, extendable by a maximum of 15 days on sufficient cause, and Rule 22(2) of the NCLAT Rules mandates that every appeal must be accompanied by a certified copy of the impugned order.
The Court observed that the NCLT order was pronounced in open court on 23 June 2023, triggering the limitation period from that date, irrespective of the later uploading on 26 June 2023. Respondent No. 1 e-filed the appeal on 25 July 2023 without annexing a certified copy of the order, without seeking exemption from its filing, and without moving an application for condonation of delay. An application for a certified copy was made only on 23 August 2023 and was received on 7 September 2023, with the condonation application being filed much later on 22 September 2023. The appellant had specifically raised the issue of limitation before the NCLAT, yet the tribunal failed to address it, possibly because the matter was decided along with multiple other appeals in a common judgment.
Relying on the binding precedents in V. Nagarajan v. SKS Ispat and Power Limited and Others, REEDLAW 2021 SC 10518 and A. Rajendra v. Gonugunta Madhusudhan Rao and Others, REEDLAW 2025 SC 04505, the Supreme Court reiterated that under the IBC framework, timelines are critical, limitation commences from the date of pronouncement of the order, and a certified copy must be applied for and filed promptly. The discretionary power under Rule 14 of the NCLAT Rules cannot be exercised to nullify the mandatory requirement under Rule 22(2). Since the appeal before the NCLAT was filed defectively, beyond the permissible period, and without compliance with statutory norms, the Court held that the NCLAT lacked jurisdiction to entertain it. Consequently, the impugned NCLAT judgment was set aside, and the appeal was allowed on the short ground of limitation and improper institution.
Ms. Preetika Dwivedi, Advocate, represented the Appellant.
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