Appeal Period Runs From Judgment Pronouncement Date, Even For Non-Parties

Summary:

[1]NCLAT has recently held that the limitation period for the appeal starts from the day of pronouncement of judgement irrespective of the fact that a person is party to the proceeding.

Facts:

The present Appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 by the Directorate of Enforcement challenging the order dated 07.01.2025 passed by the National Company Law Tribunal (NCLT), Kolkata Bench. The order had approved the resolution plan for Varutha Developers Private Limited, filed by the Resolution Professional. The appeal was electronically filed on 09.04.2025, well beyond the statutory timelines—30 days from the date of the order, plus a further extendable period of 15 days, which lapsed on 21.02.2025. The Enforcement Directorate sought condonation of delay on the ground that it became aware of the NCLT’s order only on 25.02.2025 during proceedings before the Appellate Tribunal under the PMLA, and that it was not a party to the original NCLT proceedings.

Issues:

1. Whether limitation for filing the appeal under Section 61 of the IBC against the order dated 07.01.2025 shall commence from the date of knowledge of the impugned order by the appellant i.e., with effect from 25.02.2025;
2. Whether the present appeal has been filed by the appellant within the condonable period i.e., 15 days after expiry of the limitation

Judgement:

Limitation period commences from the date of judgement irrespective of party status.

The first question is as to what is the date of commencement of the period of limitation for filing an appeal under Section 61. Hon’ble tribunal placed reliance on the following judgements of supreme court namely ‘V. Nagarajan’ Vs. ‘SKS Ispat & Power Ltd. & Ors.’ reported in [(2022) 2 SCC 244] and Sanjay Pandurang Kalate’ Vs. ‘Vistara ITCL (India) Ltd. & Ors., reported in [(2024) 3 SCC 27]. Holding that the limitation for filing the appeal under Section 61(2) commences from the date of pronouncement of the judgement and is not dependent on the knowledge of the order to the appellant/applicant.

Delay Cannot Be Condoned

Present appeal was filed on 09.04.2025 i.e., much beyond the condonable period. Appeal having been filed beyond condonable period therefore Hon’ble tribunal has no jurisdiction to condone the delay as has been laid down by the judgement of the Hon’ble Supreme Court in ‘Tata Steel Limited’ Vs. ‘Rajkumar Banerjee & Ors.’, [Civil Appeal No. 408/2023].

Analysis:

The limitation period for filing an appeal u/s 61 of IBC will commence from the date of pronouncement of judgement not from the date when it comes to the knowledge of the applicant irrespective of the fact whether the applicant/appellant was a party to the proceeding. Present appeal has been filed much later than the condonable period. Hence, the delay cannot be condoned and the application is dismissed by the court.

[1] BEFORE THE HON’BLE NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI BENCH

DIRECTORATE OF ENFORCEMENT V. ANIL KUMAR MITTAL (RP) AND ORS.

I.A. NO. 2327 OF 2025 IN COMPANY APPEAL (AT) (INSOLVENCY) NO. 605 OF 2025

JUDGEMENT DATED: 08-JULY-2025