Supreme Court: IBC appeal right dies after 60 days, no condonation

The case concerns a preliminary objection regarding limitation in a Civil Appeal filed under Section 62 of the Insolvency and Bankruptcy Code, 2016, specifically whether the time limit for filing an appeal to the Supreme Court runs from the pronouncement of the NCLAT order or the receipt of its certified copy.

Who it concerns: Appellant: The Assistant Commissioner of Central Tax, CGST Division; Respondents: Sreenivas Rao Ravinuthala and another; Bench: Justice S.V.N. Bhatti.

What the court decided

• The Court noted that the Civil Appeal was filed on 21.11.2023, which is the 111th day from the NCLAT order date of 02.08.2023.
• The Court observed that the Appellant received the certified copy of the order on 11.10.2023.
• The Court cited binding precedents (Sagufa Ahmed, V. Nagarajan, CA Ramchandra Dallaram Choudhary) establishing that the IBC is a self-contained code with strict limitation periods.
• The Court held that the absolute outer limit for filing an appeal under Section 62 of the IBC is 60 days (45 days standard plus 15 days condonable).
• The Court reasoned that the phrase 'from the date of receipt of the order' in Section 62(1) cannot be interpreted as the date of physical collection at the litigant's leisure, as this would make the limitation period indefinite.
• The Court distinguished between the exclusion of time under Section 12 of the Limitation Act and the condonation of delay under Section 62(2) of the IBC.

Also in the document

• The Court emphasized that the IBC's limitation scheme is strict and time-bound, and condonation of delay outside the statutory framework is impermissible.
• The Court noted that the right to appeal is permanently extinguished once the 60-day maximum window under the IBC closes.
• The Court stated that the Supreme Court Rules, 2013, are subordinate legislation and cannot override the IBC’s express provisions regarding limitation.