Date on which Order was Pronounced and Time taken to provide Certified Copy excluded from Limitation Period for Appeal to NCLAT: SC [Read Judgement]
Limitation Period for Appeal – Appeal – NCLAT – Supreme Court – SC – Order – Certified Copy – Pronounced – Taxscan
Limitation Period for Appeal – Appeal – NCLAT – Supreme Court – SC – Order – Certified Copy – Pronounced – Taxscan
The Supreme Court (SC) of India ruled that the date on which order was pronounced and the time taken to provide certified copy is excluded from the limitation period for appeal to the National Company Law Appellate Tribunal (NCLAT).
This appeal arose under Section 62 of the Insolvency and Bankruptcy Code 2016 from a of the National Company Law Appellate Tribunal. The NCLAT dismissed the appeal against the order of the National Company Law Tribunal (NCLT) on the ground of limitation.
The appellant, Sanket Kumar Agarwal & Anr, submitted that the appeal had been filed within the period of limitation from the date the order was made available in the public domain i.e., 15 September 2022. However, as a matter of abundant precaution, the appellant had considered 26 August 2022 to be the date from which limitation would commence.
The appellant stated that the prescribed time period of 30 days for filing the appeal ended on 5 October 2022, after accounting for the exclusion of 10 days (from 5 September 2022 to 15 September 2022 on account of the time taken to provide a certified copy).
The NCLAT concluded that the appeal was barred by limitation on the ground that it was instituted on the 46th day following the order of the NCLT, exceeding the outer limit of 45 days that was permissible under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).
A Two-Judge Bench comprising Chief Justice Dr Dhananjaya Y Chandrachud and Justice J B Pardiwala observed that “In the present case, the order was pronounced by the NCLT on 26 August 2022. Rule 3 of the NCLAT Rules 2016 stipulates that the date from which the period of limitation has to be reckoned (i.e., the date of the pronouncement of the order) would have to be excluded. Hence, the date on which the order was pronounced by the NCLT, namely 26 August 2022 would have to be excluded from the computation of limitation.”
The Bench further went on to note that “The certified copy was provided to the appellant on 15 September 2022. Hence, the period of 10 days between 5 September 2022 and 15 September 2022 taken by the court to provide a certified copy of the order ought to be excluded when determining the period of limitation under Section 61(2) of the IBC.”
While concluding the Bench also commented that “with technological advances, the country’s judiciary and tribunals must move towards efiling. This process has already commenced and is irreversible. The Union Government must have a fresh look at the rules to encourage e-filing across tribunals. Perhaps one way forward would be to constitute a Working Group to make a comprehensive assessment of the position across tribunals and suggest regulatory changes.”
To Read the full text of the Order CLICK HERE
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