Summary: The National Company Law Appellate Tribunal (NCLAT) recently rejected an appeal under the Insolvency and Bankruptcy Code (IBC) because it was filed 17 days late, reinforcing the strict adherence to statutory timelines. Under Section 61(2) of the IBC, the initial 30-day period for filing an appeal is non-negotiable, and the Tribunal’s power to condone any delay is strictly limited to an additional 15 days, setting an absolute maximum deadline of 45 days from the date the NCLT order is pronounced. This ruling affirms the Supreme Court’s position that IBC timelines are sacrosanct, prioritizing the speed and finality of resolution over excusable delays. Professionals and businesses involved in IBC matters must understand that the NCLAT has zero discretion to condone any delay exceeding 45 days, and the limitation clock starts running from the date of the order’s pronouncement, not the date the certified copy is received.
“काल करे सो आज कर, आज करे सो अब। पल में प्रलय होएगी, बहुरि करेगा कब ॥”
The National Company Law Appellate Tribunal (NCLAT) recently rejected an appeal simply because it was filed 17 days late, exceeding the statutory 15-day condonable period under the IBC.
This wasn’t a 17-month delay. It was mere 17 days of delay.
A recent Delhi Bench of National Company Law Appellate Tribunal ( NCLAT), dealing with an appeal under Section 61(2) of the IBC, firmly refused to condone a delay of 17 days. Why? Because the IBC strictly limits the maximum extension for filing an appeal to 15 days beyond the initial 30-day period. Anything beyond the total of 45 days is ultra vires (beyond the power) of the Tribunal.
This ruling reinforces the Supreme Court’s repeated stance: Timelines in IBC are sacrosanct.
Impact Analysis for Professionals & Businesses:
1) Finality is King: Confirms the goal of the IBC is speedy resolution. Delayed filings, even minor ones, threaten the entire timeline and value maximization.
2) Zero Discretion: NCLAT has zero inherent power to condone delay beyond the 15-day grace period for appeals. The statutory limit is an absolute fence.
3) The Clock Starts Early: Limitation period starts from the date the NCLT order is pronounced, not the date the certified copy is received (as per SC precedents like V. Nagarajan).
Practical Action Steps (Your Immediate Checklist):
1) Immediate Application:
If you lose a case at NCLT, apply for the certified copy of the order the very same day of pronouncement.
Map the 45 Days: Mark the 45th day from the NCLT order date on your calendar. This is your absolute, non-negotiable deadline. Plan to file at least one week before this.
2) No Room for Excuses:
Administrative delays, logistical issues, or lack of funds are generally insufficient cause for delay under the IBC’s strict framework.
In the spirit of the Mahabharata, where a moment’s decision determined destiny, under the IBC, every single day counts. The law demands Tatparata (preparedness and promptness).
What is the single biggest operational challenge your team faces in meeting the strict IBC timelines? Share your thoughts below!
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