Delay in Filing Appeal under NCLT Rules: Legal Relief Explained
If you’re filing an appeal under NCLT Rules and miss the deadline, don’t panic. As per recent judicial interpretation, delay in filing appeal under NCLT Rules can be condoned—provided you show sufficient cause. Here’s how this works, legally and practically.
What Do NCLT Rules Say About Appeal Deadlines?
Under Rule 154 of the NCLT Rules, 2016, any aggrieved party can file an appeal against an NCLT order to the National Company Law Appellate Tribunal (NCLAT) within 45 days from the date of the order.
But what happens if you’re late?
Can the Delay Be Condoned?
Yes, the delay can be condoned, but only if you provide a valid reason for the delay.
Legal Basis for Condonation
- Rule 14 of NCLT Rules, 2016: Applies provisions of the Civil Procedure Code (CPC) to NCLT proceedings wherever appropriate.
- Section 5 of the Limitation Act, 1963: Allows condonation of delay if sufficient cause is shown.
- Supreme Court in M/s Sagufa Ahmed v. Upper Assam Plywood Products (2020): Clarified that Limitation Act applies to NCLAT proceedings, unless expressly excluded.
✅ So, even though NCLT Rules don’t explicitly mention condonation, courts have held that CPC and Limitation Act provisions fill the gap.
Recent Case: Condonation Allowed Beyond 30 Days
In K.S. Oils Ltd. v. State Bank of India (Company Appeal No. 4/2024, NCLAT Principal Bench, Delhi):
- Appeal was filed 30 days after the deadline.
- Appellant cited health emergency and delayed copy of certified order.
- NCLAT condoned the delay, applying Section 5 of the Limitation Act.
Practical Guide: What to Do If You Miss the Appeal Deadline
Step-by-step
- File an application for condonation of delay along with your appeal.
- State “sufficient cause”—e.g., medical emergency, delayed certified copy, etc.
- Attach evidence—like medical reports, dispatch tracking of the order, etc.
- Use an affidavit to explain the circumstances.
Expert Tip: “Certified Copy” Triggers the Clock
Under Rule 50 of NCLT Rules, the appeal time is counted from the date of receipt of the certified order, not the pronouncement date.
📝 So always apply for certified copy immediately after order pronouncement.
Comparison Table: Appeal Timelines and Delay Rules
| Tribunal Level | Appeal Deadline | Delay Condonable? | Legal Provision |
|---|---|---|---|
| NCLT → NCLAT | 45 days | Yes, on cause | Rule 154 + S.5 Limitation Act |
| NCLAT → SC | 60 days | Yes, up to 60 more days max | Section 423 of Companies Act |
Key Takeaways
- Delay in filing appeal under NCLT Rules can be condoned if you show sufficient cause.
- Courts rely on Rule 14 + Limitation Act, even if NCLT Rules are silent.
- Certified copy receipt date is critical.
- Always document your reason for delay with proper evidence.
FAQs
Q1. What qualifies as “sufficient cause”?
Medical emergencies, late receipt of certified order, system failures, etc. if well-documented.
Q2. Can NCLT reject condonation request?
Yes, if the delay seems excessive or unjustified.
Q3. Does condonation apply to IBC appeals too?
For IBC matters, time limits are strict under the Insolvency and Bankruptcy Code, 2016, and condonation scope is narrower. Maximum extension is 15 days beyond the prescribed limit under Section 61(2) IBC.
Summary (for Google snippet):
Delay in filing appeal under NCLT Rules can be condoned if sufficient cause is proven, based on Rule 14 of NCLT Rules and Section 5 of the Limitation Act. Recent NCLAT cases support this relief.
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