Impugned Order Challenged By Way Of Appeal Must Be Filed With The Certified Copy Of The Same: Supreme Court

New Delhi, May 14 (KNN) The Hon’ble Supreme Court in a recent case set aside NCLAT order which condoned the delay of 150 days in refiling appeal that was initiated without a certified copy of the impugned order of NLCT.

Bench of Justice Sanjay Kumar and Justice K. Vinod Chandran while allowing the appeal pulled up the NCLAT for excusing the delay of 150-days that to in a position where certified copy of the impugned order was not filed in original appeal in NCLAT.

The Hon’ble Court stated that the Respondent should have applied for the certified copy of the impugned order in advance before filing appeal and failing to act in such a manner renders the appeal to be no appeal.

Case Stemmed From Angelwoods Insolvency Proceedings 

The case arose from insolvency proceedings in which the National Company Law Appellate Tribunal approved a resolution plan submitted by Angelwoods Apartment Allottees Association on August 14, 2024.

The respondent challenged the order before the appellate tribunal. Although the appeal was e-filed on September 28, 2024, the last day of the condonable limitation period under Section 61 of the Insolvency and Bankruptcy Code, it was submitted without a certified copy of the NCLT order.

150-Day Refiling Delay Questioned By Supreme Court 

Despite being informed of the defect, the respondent refiled the appeal after 150 days and applied for the certified copy only on April 21, 2025. The NCLAT later condoned both delays, prompting the successful resolution applicant to move the Supreme Court of India.

Allowing the appeal, the apex court held that the respondent should have applied for the certified copy before the limitation period expired. The bench observed that failure to do so meant there was effectively ‘no filing of an appeal in the eyes of law.’

The Court noted that a diligent litigant is expected to obtain a certified copy of the order being challenged within the prescribed timeline to claim exclusion of the time taken for obtaining the document.

It further clarified that the appeal filed before the NCLAT was not a case of curable defects but failed to meet the essential procedural requirements under the Insolvency and Bankruptcy Code and NCLAT Rules.

NCLAT Order Set Aside Over Procedural Lapse

The Supreme Court said the appellate tribunal failed to examine whether the appeal had been validly instituted before granting relief on delay condonation applications. Consequently, it allowed the appeal and set aside the NCLAT’s order.

Impact on MSMEs

The ruling highlights the need for MSMEs involved in insolvency proceedings to strictly follow procedural requirements while filing appeals. 

Missing key documents like certified copies can lead to dismissal of appeals, increasing legal risks and costs. The judgment promotes faster resolution under the Insolvency and Bankruptcy Code by discouraging procedural delays.

(KNN Bureau)