NCLAT Cannot Condone Delay Beyond 15 Days in Filing Appeals Under IBC: Supreme Court

In a significant interpretation of the Insolvency and Bankruptcy Code (IBC), the Supreme Court on Wednesday ruled that the National Company Law Appellate Tribunal (NCLAT) is statutorily barred from condoning delays in filing appeals beyond 15 days after the prescribed 30-day period.

A bench comprising Justices J.B. Pardiwala and R. Mahadevan emphasised that the IBC has laid down strict timelines for initiating and pursuing insolvency proceedings to prevent the misuse of the process for recovering time-barred debts.

READ ALSO  HC seeks details on implementation of anti-human trafficking law; says offences have social ramifications

“The proviso to Section 61(2) clearly limits the NCLAT’s jurisdiction to condone delay only up to 15 days beyond the initial 30-day period,” the court said, clarifying that this outer limit is mandatory and not subject to judicial discretion.

Video thumbnail

The court added that the appellate mechanism under the IBC is “strictly time-bound by design” to maintain the speed, finality, and integrity of the insolvency resolution framework. “Even a delay of a single day is fatal if the statute does not provide for its condonation,” the bench observed.

Allowing condonation beyond the statutory limit, the court warned, would “defeat the legislative intent and open the floodgates to belated and potentially frivolous petitions,” thus undermining the core objectives of the IBC.

READ ALSO  Adhoc Judges can be appointed only after regular vacancies are filled: Centre to SC

The ruling came in response to an appeal challenging an NCLAT order that had condoned a delay beyond the permissible period. The Supreme Court set aside the NCLAT’s order, reinforcing that tribunals must adhere strictly to the timelines provided under the IBC.

Law Trend
Law Trendhttps://lawtrend.in/
Legal News Website Providing Latest Judgments of Supreme Court and High Court

Related Articles

Latest Articles