The Supreme Court held that the limitation period for filing an appeal under Section 62 of the IBC begins from the date of the NCLAT order, not from the date of receipt of the certified copy. The time taken to obtain the certified copy cannot be excluded from limitation.
Limitation for Appeal Against NCLAT Order Starts from Date of Order
The Supreme Court has ruled that the period of limitation for filing an appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order of the National Company Law Appellate Tribunal (NCLAT) begins to run from the date of the order itself, not from the date of receipt of the certified copy. The Court emphasized that the delay in obtaining the certified copy cannot be excluded when computing the 60-day limitation period prescribed under Section 62.
The Court dismissed the argument that the limitation should commence only upon receipt of the certified copy, stating that litigants are expected to act promptly. The judgment reaffirmed settled principles that a party must take reasonable steps to secure the record without delay.
"The limitation begins to run from the date of the pronouncement of the order, and the onus is on the appellant to obtain the certified copy expeditiously,"the Court observed.
This ruling has significant implications for insolvency professionals and corporate litigators, who must now ensure that appeals before the Supreme Court are filed within 60 days of the NCLAT’s order, irrespective of delays in obtaining official records. Practitioners should initiate requests for certified copies immediately after the order is pronounced to safeguard against dismissal on limitation grounds.
Citations
- Section 62, Insolvency and Bankruptcy Code, 2016
