Supreme Court: NCLAT has no power to condone delay beyond the period stipulated under the statute.

The appellant was the successful resolution applicant for Corporate Debtor whose resolution plan was approved by the Committee of Creditors and subsequently by the National Company Law Tribunal [NCLT]. 

Respondent No.1 is an erstwhile minority shareholder of the Corporate Debtor. 

Respondent No.1 preferred an appeal under Section 61 of the Insolvency and Bankruptcy Code [IBC] for setting aside the order passed by the Adjudicating Authority and also filed an interlocutory application praying for condonation of delay of 15 days in filing the same.  

Vide the impugned order, the NCLAT condoned the delay and allowed the application for condonation of delay.   

Aggrieved by the same, the appellant filed before the Supreme Court.  

The court opined that under section 61(2) IBC, the limitation period for filing an appeal to the NCLAT commences from the date of pronouncement of the order by the NCLT, not from the date when the order is received or made available to the aggrieved party.   

The Respondent No. 1 cannot avail of the benefit of section 4 of the Limitation Act, 1963, as the appeal was filed beyond not only the prescribed period of 30 days but also the condonable period of 15 days.  

The court observed that NCLAT lacks inherent jurisdiction to extend time beyond the period stipulated under the statute, on equitable grounds.  

The court held the order passed by the NCLAT condoning the delay in filing the appeal, as ultra vires and set aside the order.  

In The Supreme Court of India  

Civil Appellate Jurisdiction  

Civil Appeal No. 408 Of 2023 

Tata Steel Limited ... Appellant(S) 

Versus   

Raj Kumar Banerjee & Ors …Respondent(S) 

Dated 7th May 2025