Case Note & Summary
The case involves an appeal filed by Boorugu Infra Projects Private Limited in consortium with Vishwanath Projects Limited against the order of the National Company Law Tribunal (NCLT) approving a resolution plan for Manjeera Retail Holdings Pvt. Ltd. under the Insolvency and Bankruptcy Code, 2016. The appellant claimed to be a creditor but was not a party to the Corporate Insolvency Resolution Process (CIRP) and its claim was not admitted by the Resolution Professional. The appeal was filed with a delay of 12 days, which was condoned as it fell within the 45-day period under Section 61(2) of the IBC. The main legal issue was whether the appellant had the locus standi to file the appeal. The NCLAT held that only an 'aggrieved person' can appeal under Section 61, and the appellant, not being a party to the CIRP or having an admitted claim, did not qualify. The court dismissed the appeal as not maintainable, upholding the NCLT's approval of the resolution plan.
Headnote
A) Insolvency and Bankruptcy Code - Locus Standi - Section 61 IBC, 2016 - Appeal by Non-Party - The appellant, not being a creditor or a party to the CIRP, and whose claim was not admitted, is not an 'aggrieved person' entitled to appeal under Section 61 of the IBC, 2016. The appeal was dismissed as not maintainable. (Paras 6-10)
B) Insolvency and Bankruptcy Code - Limitation - Section 61(2) proviso IBC, 2016 - Condonation of Delay - The appeal was filed beyond 30 days but within 45 days from the date of the impugned order. The delay of 12 days was condoned as it fell within the permissible period under the proviso to Section 61(2) of the IBC, 2016. (Paras 3-5)
Issue of Consideration
Whether the appellant, who was not a party to the CIRP and whose claim was not admitted, has the locus standi to file an appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 against the order approving the resolution plan.
Final Decision
The appeal is dismissed as not maintainable. The delay is condoned but the appeal fails on merits for lack of standing.
Law Points
- Standing to appeal under Section 61 IBC
- 2016
- Aggrieved person requirement
- Limitation period under proviso to Section 61(2) IBC
- Condonation of delay beyond 45 days not permissible
Case Details
2024 LawText (NCLAT) (01) 56
Company Appeal (AT) (CH) (Ins) No. 379/2025
Justice Sharad Kumar Sharma (Member Judicial)
Mr. Arun C. Mohan (for Appellant), Mr. VVSN Raju (for R1/RP), Mr. Palash Taing (for R2/CoC)
Boorugu Infra Projects Private Limited in Consortium with Vishwanath Projects Limited
Mr. Birendra Kumar Agarwal (Resolution Professional of M/s. Manjeera Retail Holding Pvt. Ltd.), Committee of Creditors of Manjeera Retail Holdings Pvt. Ltd., Lulu International Shopping Malls Private Limited
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Nature of Litigation
Appeal against order of NCLT approving resolution plan under IBC
Remedy Sought
Appellant sought to set aside the order approving the resolution plan
Filing Reason
Appellant claimed to be a creditor but was not a party to CIRP and its claim was not admitted
Previous Decisions
NCLT approved the resolution plan; appellant filed appeal with delay of 12 days
Issues
Whether the appellant has locus standi to file the appeal under Section 61 of IBC, 2016
Whether the delay in filing the appeal can be condoned
Submissions/Arguments
Appellant argued that it is a creditor and aggrieved by the approval of resolution plan
Respondents argued that appellant is not a party to CIRP and not an aggrieved person
Ratio Decidendi
Only an 'aggrieved person' who is a party to the CIRP or whose claim is admitted can appeal under Section 61 of IBC, 2016. A person whose claim is not admitted and who is not a party to the CIRP has no locus standi to challenge the order approving the resolution plan.
Judgment Excerpts
The Company Appeal is being decided finally, at this stage.
Having considered the reasons which has been given, particularly on the ground that the impugned order itself was uploaded on 27.03.2025 and 30 days from the said date i.e. 27.03.2025, would be expiring on 26.04.2025 and as the Company Appeal was preferred on 07.05.2025, the number of days of delay that has chanced will be falling well within the upper time limit of 45 days as prescribed under the proviso to sub-section (2) of Section 61 of I & B Code, 2016.
Procedural History
The NCLT approved the resolution plan for Manjeera Retail Holdings Pvt. Ltd. The appellant filed an appeal before NCLAT on 07.05.2025 against the order dated 27.03.2025, with a delay of 12 days. The NCLAT heard the matter and dismissed the appeal for lack of standing.
Acts & Sections
- Insolvency and Bankruptcy Code, 2016: Section 61, Section 61(2) proviso
