Appeals under IBC: Sections 61 and 62

A time-bound insolvency process cannot afford appeals that drag on or reopen commercial decisions. The Code therefore provides a short, two-tier appellate route, from the NCLT to the NCLAT and then to the Supreme Court on questions of law, with strict limitation periods and narrow grounds against the approval of a resolution plan. This note explains the appellate scheme, the grounds of appeal and the Supreme Court's decisions on limitation.

1. Appeal to the NCLAT, Section 61

• Section 61(1). Notwithstanding anything in the Companies Act, 2013, any person aggrieved by an order of the NCLT under Part II may appeal to the NCLAT.
• Limitation, section 61(2). The appeal must be filed within 30 days; the NCLAT may allow it within a further period of not more than 15 days if it is satisfied that there was sufficient cause for not filing within 30 days.
• Person aggrieved. A person whose legal rights are adversely affected by the order, not merely a person with a grievance; this includes creditors, the corporate debtor's shareholders or directors in suitable cases, and resolution applicants.
• Disposal, 2026. Section 61(6), inserted in 2026, requires the NCLAT to dispose of the appeal within three months of its receipt.

Figure 1: The appellate route under Part II

2. Grounds against Plan Approval and Liquidation

Figure 2: Limited grounds of appeal

• Section 61(3). An appeal against an order approving a resolution plan under section 31 may be filed only on the grounds that the plan contravenes any law in force; that there was material irregularity in the exercise of the resolution professional's powers during the CIRP; that the debts owed to operational creditors have not been provided for in the manner specified; that the CIRP costs have not been provided for repayment in priority to all other debts; or that the plan does not comply with any other criteria specified by the IBBI.
• Commercial wisdom. These grounds do not permit the NCLAT to review the commercial merits of the plan or the committee's choice between plans (Topic 28); in Pratap Technocrats (2021), the Supreme Court held that there is no residual equity jurisdiction beyond these grounds.
• Section 61(4). An appeal against a liquidation order under section 33 may be filed on grounds of material irregularity or fraud committed in relation to the order.
• Other orders. Orders admitting or rejecting applications, on claims, and on avoidance and other applications are appealable as orders of the NCLT, subject to the general standards of appellate review.

3. Limitation: The Leading Cases

Figure 3: How the Supreme Court has read section 61

• V. Nagarajan v SKS Ispat and Power, 2021. Limitation under section 61 begins from the date the order is pronounced, not from when the party receives a certified copy; a party aware of the order must apply for a certified copy, and cannot wait indefinitely.
• National Spot Exchange v Anil Kohli, 2021. The NCLAT cannot condone delay beyond the 15 days allowed by section 61(2), and the Supreme Court declined to use Article 142 to condone a delay of 44 days, since that power cannot be exercised contrary to an express statutory provision.
• Sanjay Pandurang Kalate v Vistra ITCL, 2023. Decided on 4 December 2023, it reaffirmed that time runs from pronouncement, but held that where no order was pronounced at the hearing, time began only when the order was uploaded; the appeal was restored to the NCLAT to consider condonation of the delay.
• Effect. Appellants must track the date of pronouncement closely, since the outer limit of 45 days is absolute.

4. Appeal to the Supreme Court, Section 62

• Section 62(1). Any person aggrieved by an order of the NCLAT may appeal to the Supreme Court on a question of law arising out of the order within 45 days of receipt of the order.
• Section 62(2). The Supreme Court may allow a further period of up to 15 days for sufficient cause.
• Question of law. The appeal is confined to questions of law; findings of fact are ordinarily not reopened.

5. Other Appellate Routes

• Part III. For individuals and firms, appeals lie from the DRT to the DRAT within 30 days, and then to the Supreme Court within 45 days (sections 181 and 182); for personal guarantors to corporate debtors, the NCLT's orders are appealable to the NCLAT (Topic 71)
• Service providers. Since 2026, an order of an IBBI disciplinary committee is appealable to the NCLAT within 30 days, extendable by 15 days (section 220(7) and (8)), and orders on registration of agencies and information utilities are appealable to the NCLAT (Topic 75)

6. Frequently Asked Questions

Can the NCLAT condone a delay of 20 days beyond the 30-day period?

No. Section 61(2) allows condonation of at most 15 days beyond the 30-day period, and National Spot Exchange (2021) held that even Article 142 cannot be used to extend it.

Can an unsuccessful bidder appeal on the ground that its plan offered more money?

Not on that ground alone. Section 61(3) allows appeals only on specified grounds, and the committee's commercial choice between plans is not open to review.

From when does limitation run if the party gets a certified copy two weeks after the order is pronounced?

From the date of pronouncement, under V. Nagarajan (2021). The time taken to obtain a certified copy does not postpone the start of limitation if the order was pronounced.

Can a pure question of fact be taken to the Supreme Court under section 62?

No. Section 62 permits appeals only on questions of law arising out of the NCLAT's order.

7. Related Topics

• Topic 28: Commercial Wisdom of the CoC. Limited review of plans.
• Topic 42: Section 31. Approval and the clean slate.
• Topic 72: Adjudicating Authority. Section 60 and 60(5)