Case Note & Summary
The case arises from an appeal filed by M Lalitha (respondent No. 1) before the National Company Law Appellate Tribunal, Chennai (NCLAT), under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC), challenging an order dated 14.08.2024 of the National Company Law Tribunal, Kochi Bench (NCLT), which approved a resolution plan submitted by the appellant. Respondent No. 1, the mother of a suspended director of the corporate debtor, Samson and Sons Builders and Developers Pvt. Ltd., claimed to be a financial creditor. She e-filed the appeal on 28.09.2024, the last day of the condonable period of 15 days beyond the 30-day limitation. The appeal had defects, which were communicated on 04.10.2024. The appeal was refiled only on 10.03.2025, with a delay of 150 days in refiling. Even after refiling, several defects remained, including the absence of a certified copy of the impugned NCLT order. Respondent No. 1 applied for the certified copy only on 21.04.2025, long after refiling. She also did not file any application seeking exemption from filing the certified copy. The NCLAT, by order dated 10.11.2025, condoned both the delay in filing (15 days) and the delay in refiling (150 days), imposing costs of ₹50,000. The appellant challenged this order before the Supreme Court. The Supreme Court examined the record, including the NCLAT Registry's scrutiny report, and found that the appeal was not accompanied by a certified copy of the impugned order as required by Rule 22(2) of the NCLAT Rules, 2016. Relying on V. Nagarajan vs. SKS Ispat and Power Limited, the Court held that the requirement of a certified copy is not merely technical but indicates diligence. The Court noted that respondent No. 1 did not apply for a certified copy before the expiry of limitation nor sought exemption under Rules 14 and 15 of the NCLAT Rules. The appeal, as filed and refiled, was incurably defective and incompetent. The Supreme Court set aside the NCLAT's order, allowed the appeals, and directed that parties bear their own costs.
Headnote
A) Insolvency and Bankruptcy Code - Appeal - Limitation - Section 61, IBC, 2016 - Filing of appeal without certified copy of impugned order and without exemption application renders the appeal incompetent - The NCLAT erred in condoning delay without first ascertaining whether the appeal was instituted in accordance with norms - Held that the appeal was incurably tainted and ought to have been rejected at threshold (Paras 1-11). B) NCLAT Rules - Certified Copy - Rule 22(2), NCLAT Rules, 2016 - Every appeal shall be accompanied by a certified copy of the impugned order - Filing an application for certified copy is not just a technical requirement but an indication of diligence - Failure to apply for certified copy before expiry of limitation or to seek exemption renders the appeal defective beyond redemption (Paras 7-10). C) Limitation - Condonation of Delay - Section 61(2), IBC, 2016 - The proviso allows a maximum condonable delay of 15 days beyond the 30-day limitation period - However, even if the appeal is filed within the extended period, it must comply with mandatory requirements such as filing a certified copy - The NCLAT's condonation of delay in refiling (150 days) was improper as the appeal was not properly constituted (Paras 4-6, 10-11).
Issue of Consideration
Whether an appeal filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, without a certified copy of the impugned order and without an application for exemption, can be considered a valid institution, and whether the NCLAT erred in condoning the delay in filing and refiling of such an appeal.
Final Decision
The Supreme Court allowed the appeals, set aside the order dated 10.11.2025 passed by the National Company Law Appellate Tribunal, Chennai, in IA Nos. 1164 and 1165 in Company Appeal No. (AT)(CH)(Ins) No. 252 of 2025. Parties were directed to bear their own costs.
Law Points
- Insolvency and Bankruptcy Code
- 2016
- Section 61
- Limitation
- Certified Copy
- NCLAT Rules
- Rule 22
- Rule 26
- Condonation of Delay
- Refiling
- Defects
