Supreme Court rules limitation for IBC appeals starts from NCLAT order pronouncement

The Supreme Court has clarified the timeline for filing appeals under the Insolvency and Bankruptcy Code, 2016. A Division Bench comprising Justices S.V.N. Bhatti and N.V. Anjaria ruled that the 45-day limitation period for appeals under Section 62 of the IBC commences from the date the NCLAT pronounces its order.

The Court held that only the time required to obtain a certified copy can be excluded under Section 12(2) of the Limitation Act, 1963. Any period of inaction before applying for the certified copy cannot be deducted from the statutory timeline. The bench dismissed the appeal before it as barred by limitation, as it was filed beyond the 45-day period and the further condonable 15-day extension.

The case involved an appeal filed by the Assistant Commissioner of Central Tax challenging a 2 August 2023 NCLAT order that had confirmed a resolution plan. The underlying dispute stemmed from recovery proceedings initiated by the Department against an Export Oriented Unit corporate debtor between 2013 and 2017.