An Appeal under IBC is valid only if it is initiated within 30 days from Date of Order: Supreme Court [Read Order]

The Supreme Court has held that an appeal under the Insolvency and Bankruptcy Code (IBC) is valid only if it is initiated within 30 days from the date of the order by National Company Law Tribunal.

The bench consisting of Justice L Nageswara Rao and Justice Pamidighantam Sri Narasimha ruled in favour of the appellant Safire Technology Pvt ltd who appealed against the order of NCLT

The appellant contended that an appeal against an order passed by the NCLT has to be filed within 45 days from the date of passing of the order. The respondent claimed dues on the provident fund before the Resolution Professional on 09.10.2019. An appeal was filed by the respondent before the National Company Law Appellate Tribunal against the order dated 22.10.2019 approving the resolution plan. The respondent contended that the period of limitation would start from the date of knowledge and claimed that the respondent came to know about the order passed by the NCLT later.

The court recalled the case of Kalpraj Dharamshi and held that “an appeal against the order of NCLT shall be preferred within 30 days from the date on which the order was passed by the NCLT.  The Appellate Tribunal has the power to extend the period of limitation by another 15 days.”

 The bench held that the Appellate Tribunal committed an error in issuing notice in an appeal that was filed by the respondent with a delay of 388 days and allowed the appeal. Mr U K Chaudary appeared on behalf of the appellant and Mr Roony Oommen John appeared on behalf of the respondent.

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