Appeals barred by limitation under Insolvency and Bankruptcy Code as delay exceeds permissible period
In a significant ruling, the National Company Law Appellate Tribunal (NCLAT) Chennai Bench, comprising Justice Sharad Kumar Sharma and Member Jatindranath Swain, has rejected the condonation of delay applications filed by Cerebra Integrated Technologies Ltd. The decision pertains to the appeals against orders dated May 1, 2025, concerning insolvency proceedings involving Just Right Life Ltd.
The Tribunal highlighted the importance of adhering to the statutory time limits prescribed under the Insolvency and Bankruptcy Code, 2016. According to Section 61(2) of the Code, the maximum permissible period for filing an appeal is 45 days from the date the impugned order is made public. In this case, the order was uploaded on the NCLT website on May 5, 2025, marking the commencement of the limitation period. However, Cerebra Integrated Technologies Ltd. filed their appeals on June 23, 2025, 49 days after the upload, exceeding the statutory limit.
The appellant argued that the limitation period should start from May 15, 2025, the date they received a free copy of the order. The Tribunal, however, clarified that the limitation period begins when the order is uploaded and becomes publicly accessible, not from when the appellant receives a physical copy.
The Tribunal emphasized that the provision for condonation of delay under Section 61(2) does not allow for extensions beyond the 45-day window. Furthermore, the Tribunal noted the absence of any record indicating when the appellant applied for a certified copy of the order, which could have been a factor in determining the timeline.
Ultimately, the Tribunal ruled that the appeals were barred by limitation due to the late filing, and consequently, both the condonation of delay applications and the appeals were rejected.
This ruling underscores the strict adherence to procedural timelines in insolvency proceedings, serving as a reminder to litigants about the importance of timely action in legal processes.
Bottom Line:
Condonation of delay in filing appeals under Section 61(2) of the Insolvency and Bankruptcy Code, 2016 is not permissible if the delay exceeds the maximum period of 45 days from the date of the impugned order being made public or uploaded.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016, Section 61(2)
