SC Sets Aside NCLAT Order, Says Portal Failure Cannot Defeat Right To Appeal

New Delhi, Sep 17 (KNN) The Supreme Court has held that a litigant cannot be denied the right to pursue an appeal solely because e-filing was completed a day beyond the statutory limitation period due to a technical failure in the tribunal’s own filing system.

A Bench of Justice Dipankar Datta and Justice Sheel Nagu set aside a National Company Law Appellate Tribunal (NCLAT), New Delhi order dismissing an appeal as time-barred, holding that the tribunal should have applied the principle of actus curiae neminem gravabit, an act of the court shall prejudice no one.

Appeal Delayed Due To Portal Failure

The case arose from an appeal against a resolution plan approved by the NCLT, Mumbai, on December 15, 2025. The Regional Provident Fund Commissioner-II attempted to e-file the appeal before the NCLAT on January 28, 2026, but faced technical issues.

A further attempt on January 29, the last day of the 45-day outer limit under Section 61(2) of the IBC, also failed due to a backend defect. The appeal was ultimately e-filed on January 30. 

Section 61(2) allows 30 days for filing, with a further 15 days for condonation on sufficient cause, but bars condonation beyond 45 days.

SC Distinguishes System Failure From Litigant Delay

The NCLAT rejected the condonation application and dismissed the appeal, holding that it could not condone delay beyond the statutory 30+15-day period.

The Supreme Court noted that the delay was not due to negligence or laches, with the NCLAT Registry confirming bona fide filing attempts from January 28 and OTP delivery failures on its portal. 

The Court clarified that it was not extending NCLAT’s power to condone delay beyond the statutory limit; instead, the period of the portal’s non-functionality could be excluded from limitation, treating the first bona fide filing attempt as the date of presentation.

Appeal Restored For Decision On Merits

The Court held that limitation can apply only when the court or tribunal is open and capable of receiving filings. If a tribunal’s own system prevents a bona fide filing within time, the litigant should not be prejudiced by the technical failure.

Applying the principle actus curiae neminem gravabit, the Court said NCLAT should have treated the first bona fide e-filing attempt as the date of presentation. 

It set aside the NCLAT order, restored the appeal and directed it to reconsider whether sufficient cause existed to condone the delay beyond 30 days under Section 61(2) and decide the matter on merits.

Impact on MSMEs

The ruling protects MSMEs from losing their right to appeal due to technical failures in tribunal e-filing systems. It provides greater procedural certainty, reduces the risk of losing legal remedies for reasons beyond a business’s control, and supports fair resolution of insolvency disputes. 

(KNN Bureau)