Limitation Period to File an Appeal Before NCLAT Along with Certified Copy of the Order, Doesn’t Necessarily Expire if the Certified Copy of the Order is not Applied for Within 30 Days of the Order

Various appeals under section 61 of the IBC were filed before the Hon’ble NCLAT Delhi in the matter of Chanderpati v. Soni Realtors Pvt. Ltd., against the impugned order of the Adjudicating Authority (“NCLT”) that allowed the Application of the Resolution Professional (“RP”) approving the Resolution Plan submitted by the Successful Resolution Applicant.

The maintainability of the said appeals was challenged by the RP inter alia, on the ground that the period of 30 days prescribed for filing the appeal along with further period of 15 days upon show casing sufficient cause, had also expired but these appeals have been filed without annexing the certified copy of the impugned order and the certified copies of the impugned order were applied much after the expiry of period of 45 days for which reason the appeals deserved to be dismissed.

The Bench considered the Hon’ble Supreme Court’s interpretation of Rule 22(2) of the National Company Law Appellate Tribunal Rules 2016 (“NCLAT Rules”), in the case of V. Nagarajan v. SKS Ispat whereby it was held that the filing of the certified copy of the impugned order for the purpose of appeal is mandatory. However, Rule 14 of the NCLAT Rules gives the power to the Appellate Tribunal to exempt the parties from complying with any of the requirement of the Rules on sufficient cause being shown and, on the application moved in that regard. Such waiver is usually granted in case of a downloaded online copy, in lieu of a certified copy of the order. The Supreme Court also emphasised that parties are not dispensed with their obligation to apply for and obtain a certified copy of the order for filing an appeal. The limitation to file an appeal commences from the date of order and the time taken by the Court to provide the certified copy is excluded, provided a certified copy is applied within the period of limitation prescribed under Section 61(2) of IBC.

However, the issue that came up in the above appeals before NCLAT was whether the limitation period expires if the certified copy of the order is not applied for within 30 days?

NCLAT held that since it has the jurisdiction to grant exemption under Rule 14 of NCLAT Rules from compliance of the said Rules upon sufficient cause shown in an appropriate application filed by the Appellant, it allowed the appeals where sufficient cause was made out by the Appellants under their application for exemption. The Bench further, directed such Appellants to file the certified copy of the impugned order within a period of 30 days from the date of passing of this order. Further, the applications for condonation of delay in filing the said appeals were declared to be heard individually in due course.

Furthermore, the Bench rejected/dismissed the appeals wherein exemption under Rule 14 through an application was not sought by the Appellants.