The limitation period for filing an appeal under Section 61 of the IBC begins on the date of the announcement; a delay in uploading will not prevent the limitation period from starting

The SC ruled that the time limit for submitting an appeal against an order under Section 61 of the Insolvency and Bankruptcy Code begins to run as soon as the order is issued, regardless of when it is published.

As a result, a party that fails to file an application for a certified copy of the order within a reasonable amount of time cannot argue that the period of limitation should be extended because the order was not uploaded on time.

The Court determined that the time spent waiting for a free certified copy does not prolong the limitation period under Section 61(2) of the IBC for a party who has not requested one.

According to the Court, a conscientious litigant should apply for the certified copy right away. According to the bench of Justices DY Chandrachud, Vikram Nath, and BV Nagarathna, filing an application for a certified copy is not only a technical requirement for computing the statute of limitations, but also an indication of the aggrieved party’s diligence in pursuing the litigation in a timely manner.

The Supreme Court further stated that the annexation of a certified copy for an appeal to the NCLAT against an order made under the Insolvency and Bankruptcy Code, 2016, cannot be waived automatically. The period between the date of application and the date of receipt of order can be exempt from limitation under Section 12 of the Limitation Act if an application has been filed.

The litigant must file the appeal within thirty days, with a fifteen-day extension possible if adequate cause is shown, according to the court.

Finally, the Court made the following observations:

“On December 31, 2019, the appellant appeared before the NCLT, where temporary relief was denied and the miscellaneous application was rejected. The appellant has made no effort to get a certified copy of the aforementioned order and has instead relied on the date of the order’s uploading to the website (12 March 2020).

Due to the thirty-day term required by Section 61(1), the time restriction for submitting an appeal against the NCLT’s order dated December 31, 2019, expired on January 30, 2020. Due to the fifteen-day limit imposed by the proviso to Section 61 clause 2, any opportunity for a delay condonation lapsed on February 14, 2020. The COVID19 pandemic lockdown, which began on March 23, 2020, and the Court’s suo motu order had no bearing on the appellant’s entitlement to file an appeal in this case, and the NCLAT appropriately dismissed the appeal on the grounds of limitation. As a result, the current appeal under IBC Section 62 is dismissed.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close