Supreme Court rules that the 60-day limitation period for filing an appeal against NCLAT orders under Section 62 of IBC begins from the date of order, not receipt of certified copy.
Limitation for NCLAT Appeal Begins from Date of Order: Supreme Court
The Supreme Court has clarified that the limitation period for filing an appeal against an order of the National Company Law Appellate Tribunal (NCLAT) under Section 62 of the Insolvency and Bankruptcy Code, 2016 begins from the date of pronouncement of the order, not from the date of receipt of the certified copy.
This interpretation resolves a long-pending ambiguity regarding time computation. The Court held that the statutory 60-day period under Section 62 cannot be extended by the time taken to obtain the certified copy.
'The time taken to apply for the certified copy cannot be excluded from calculation of limitation,'the bench observed, emphasizing that litigants must act promptly upon knowledge of the order. The ruling aligns with Section 12(2) of the Limitation Act, 1963, which specifies that limitation starts when the right to appeal accrues.
For insolvency and corporate practitioners, this decision reinforces the need for immediate post-order monitoring. It mandates prompt requests for copies and early drafting of appeals. Delays in obtaining certified copies will no longer serve as a basis for condonation under Section 5 of the Limitation Act unless exceptional circumstances are demonstrated.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 62
- Limitation Act, 1963, Section 12(2)
