Case Note & Summary
The Supreme Court addressed appeals arising under Section 62 of the Insolvency and Bankruptcy Code, 2016, concerning a judgment from the National Company Law Appellate Tribunal (NCLAT) that dismissed an appeal on the grounds of limitation. The appellant, a former director of Evirant Developers Private Limited, contested the initiation of Corporate Insolvency Resolution Process (CIRP) against the company by Vistra ITCL (India) Limited, alleging collusion among the respondents. The NCLT had dismissed the appellant's interlocutory application, which was filed without authorization from the Board of Directors. The NCLAT concluded that the appeal was barred by limitation, asserting that it was filed beyond the 45-day outer limit prescribed under Section 61 of the IBC. The appellant argued that the limitation period should start from the date he received the certified copy of the NCLT order. The Supreme Court analyzed the commencement of the limitation period, emphasizing that it begins from the date of pronouncement of the order, not the date of uploading or receipt of the certified copy. The court noted that the NCLT had not pronounced any order on 17 May 2023, and thus the limitation period commenced on 30 May 2023, allowing the appeal to be restored for reconsideration of the delay. The court directed the NCLAT to expedite the appeal process while not staying the CIRP at this stage.
Headnote
A) Insolvency Law - Limitation Period for Appeals - Commencement of Limitation - Insolvency and Bankruptcy Code, 2016, Section 61 - The court clarified that the limitation period for filing an appeal under the IBC commences from the date of pronouncement of the order, not from the date of uploading or receipt of a certified copy. The court held that in this case, the limitation began on 30 May 2023, allowing for a reconsideration of the appeal regarding the condonation of delay (Paras 21-21).
Issue of Consideration
Whether the appeal was instituted within the limitation period as prescribed under the Insolvency and Bankruptcy Code, 2016.
Final Decision
The Supreme Court set aside the NCLAT's order declining to condone the delay and restored the appeal for reconsideration, directing the NCLAT to expedite the process.
Law Points
- Insolvency and Bankruptcy Code
- limitation period
- e-filing
- certified copy
- pronouncement of order
