IBC Appeals: NCLAT Limitation and Section 61(3) Grounds

Appeals under the Code are short and strict. The clock starts when the order is pronounced, not when a copy arrives; the outer limit cannot be stretched, even by the Supreme Court; and appeals against plans and liquidation orders lie only on specified grounds. Questions test the dates, the standing of the appellant, the grounds, and the route to the Supreme Court.

1. The Law in Brief

Figure 1: Appeals to the NCLAT and the Supreme Court

Section 61. Any person aggrieved by an NCLT order under Part II may appeal to the NCLAT within 30 days, extendable by up to 15 days for sufficient cause; after 2026, the NCLAT must decide within three months.
Limited grounds. Against approval of a plan, only the grounds in section 61(3); against a liquidation order, material irregularity or fraud (section 61(4))
Section 62. An appeal to the Supreme Court lies on a question of law within 45 days of receipt of the NCLAT's order, extendable by up to 15 days.

2. When Does Limitation for a Section 61 Appeal Begin?

Facts

The NCLT pronounced an order admitting AB Ltd's CIRP in open court on 1 July 2026. AB Ltd's director applied for a certified copy on 15 July and received it on 25 July. He filed an appeal on 10 August with an application for condonation, explaining that he had been ill. A second appeal by another party against the same order was filed on 20 August. Decide both.

Issue. When limitation begins under section 61(2), and whether delay beyond 45 days can be condoned.
Law. In V. Nagarajan v SKS Ispat and Power (2021), the Supreme Court held that time under section 61(2) runs from pronouncement of the order, not receipt of a certified copy. The NCLAT may extend the 30 days by up to 15 days for sufficient cause. In National Spot Exchange v Anil Kohli (2021), the Court held that delay beyond 45 days cannot be condoned by the NCLAT, and declined to use Article 142 against the express statute.
Application. Thirty days from 1 July ended on 31 July; the outer limit ended on 15 August. The first appeal, on 10 August, is within the extended period if illness is accepted as sufficient cause. The second appeal, on 20 August, is beyond 45 days.
Conclusion. The first appeal may be heard if the NCLAT is satisfied with the reason for delay. The second appeal is barred and cannot be saved.

Counting the limitation period

Figure 2: Counting the limitation period

3. When Does Time Run for an Unpronounced Order?

Facts

The NCLT heard CD Ltd's case and reserved orders on 1 June 2026. No date was announced, and the order rejecting a creditor's claim was uploaded on its website on 10 August 2026 without being pronounced in court. The creditor appealed on 5 September 2026. The respondent argues that time ran from the date shown on the order, 30 June. Decide.

Issue. When limitation begins where an order was not pronounced in open court.
Law. In Sanjay Pandurang Kalate v Vistra ITCL (2023), the Supreme Court reaffirmed that time runs from pronouncement, but held that where an order is not pronounced at a hearing with notice to the parties, time begins when it is uploaded and made available.
Application. The order was not pronounced and the parties had no notice; it became available on 10 August. The appeal on 5 September was filed 26 days later.
Conclusion. The appeal is within 30 days of upload and is maintainable. The date written on the order is not decisive where it was never pronounced.

4. On What Grounds Can a Liquidation Order Be Appealed?

Facts

The NCLT ordered EF Ltd's liquidation on the committee's 70 per cent decision under section 33(2). A shareholder appeals, arguing that the business was viable and that liquidation would destroy value. A supplier also appeals, showing that the resolution professional had hidden a bid from the committee before the vote. Decide both.

Issue. The grounds on which a liquidation order may be challenged, and who may appeal.
Law. Section 61(4) permits an appeal against a liquidation order on grounds of material irregularity or fraud committed in relation to it. The committee's commercial decision to liquidate is not reviewable on its merits. A person aggrieved is one whose legal rights are affected by the order.
Application. The shareholder's argument attacks the commercial merits of the committee's decision. The supplier shows that the professional suppressed a bid, which is a material irregularity directly affecting the committee's decision.
Conclusion. The shareholder's appeal fails on the merits. The supplier's appeal raises a valid ground under section 61(4); if proved, the NCLAT may set aside the order and direct the committee to consider the suppressed bid, deciding within three months under section 61(6)

5. When Does an Appeal Lie to the Supreme Court?

Facts

The NCLAT upheld the approval of a plan for GH Ltd. A dissenting bank wants to appeal to the Supreme Court, arguing (i) that the NCLAT misread the amount it would receive in liquidation, and (ii) that the NCLAT wrongly held that section 30(2)(ba), inserted in 2026, applied to its case despite the transitional Explanation. It received the NCLAT's order on 1 September 2026. Advise.

Issue. The scope of and time for an appeal to the Supreme Court under section 62.
Law. Section 62 allows an appeal to the Supreme Court on a question of law arising out of the NCLAT's order, within 45 days of its receipt, extendable by up to 15 days for sufficient cause.
Application. The computation of the liquidation amount is essentially a question of fact. Whether the amended section 30(2)(ba) applies in light of its transitional Explanation is a question of law.
Conclusion. The bank may appeal on the second ground, by 16 October 2026, or within a further 15 days for sufficient cause. The first ground is unlikely to be entertained unless it involves a legal error in the method of computation.

⚠ Exam trap

Time runs from pronouncement, not from the certified copy (V. Nagarajan, 2021), or from upload if never pronounced (Sanjay Kalate, 2023). Thirty days plus fifteen is absolute; not even Article 142 helps (National Spot Exchange, 2021). Plan approvals only on s. 61(3) grounds; liquidation orders only for material irregularity or fraud. NCLAT decides within three months after 2026. Supreme Court: questions of law, 45 plus 15 days from receipt.

6. Frequently Asked Questions

Where do appeals lie for individuals and firms under Part III?

From the DRT to the DRAT within 30 days, then to the Supreme Court; for personal guarantors to corporate debtors, from the NCLT to the NCLAT.

Can an IBBI disciplinary order be appealed?

Yes. Since 2026, to the NCLAT within 30 days, extendable by 15 (section 220).

Does an appeal stay the CIRP?

Not automatically; the NCLAT may grant interim relief, but the process usually continues.

7. Related Topics

Topic 73: Appeals. Sections 61 and 62.
Topic 117: Commercial Wisdom of CoC. Limits of review.
Topic 137: IBC vs SARFAESI vs DRT vs Winding Up. SARFAESI, RDB Act and Companies Act.