Case Note & Summary
The appeal was filed against an order dated 13/07/2026 by the National Company Law Tribunal (NCLT), Mumbai, which dismissed an application for exclusion of 42 days from the Corporate Insolvency Resolution Process (CIRP) period. The CIRP was initiated on 24/02/2023, and a Writ Petition was filed before the Bombay High Court, which granted a stay on the CIRP until 28/11/2025. The appellant's counsel argued that the exclusion period was inadvertently not included in the initial application due to an oversight. The NCLT had previously granted exclusion for the period from 24/06/2023 to 17/10/2025 but denied the further exclusion for 42 days. The Appellate Tribunal found that the grounds for exclusion were similar to those previously accepted and thus modified the NCLT's order to grant the exclusion for the period from 18/10/2025 to 28/11/2025. Additionally, the Tribunal found the NCLT's direction against further extensions to be inappropriate and modified it to allow any future applications for extension to be considered on their merits. The appeal was disposed of in accordance with law, and pending applications were also disposed of.
Headnote
A) Insolvency Law - Exclusion of Period - Grant of Exclusion - Insolvency and Bankruptcy Code, 2016, Section 12 - The NCLT dismissed the application for exclusion of 42 days from the CIRP period, which was initially sought for a different period. The Appellate Tribunal held that the exclusion should be granted for the period from 18/10/2025 to 28/11/2025, modifying the NCLT's order accordingly (Paras 4-4). B) Insolvency Law - Directions on Further Extensions - Insolvency and Bankruptcy Code, 2016, Section 12 - The NCLT's direction that no further extension shall be granted was deemed inappropriate. The Tribunal modified this direction, stating that any application for further extension should be disposed of on merits (Paras 5-5).
Issue of Consideration
Whether the exclusion of 42 days from the Corporate Insolvency Resolution Process (CIRP) period should be granted.
Final Decision
The Appellate Tribunal modified the NCLT's order to grant exclusion for the period from 18/10/2025 to 28/11/2025 and modified the direction regarding further extensions to allow applications to be considered on merits.
Law Points
- Corporate Insolvency Resolution Process
- exclusion of period
- interim orders
- modification of orders
