Appeals and Appellate authority [ Section 61 ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Appeals and Appellate Authority Appeal to NCLT [ Section 61(1) of IBC, 2016 ] Notwithstanding anything to the contrary contained under the Companies Act, 2013, any person aggrieved by the order of the Adjudicating Authority under this part may prefer an appeal to the National Company Law Appellate Tribunal. Time limit for filing appeal before NCLAT [ Section 61(2) of IBC, 2016 ] Every appeal under sub- section (1) shall be filed within thirty days before the National Company Law Appellate Tribunal: Provided that the National Company Law Appellate Tribunal may allow an appeal to be filed after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing the appeal but such period shall not exceed fifteen days. Sufficient Cause Means a cause which is beyond the control of the party invoking the aid of the act. The Limitation act including section 14 would not apply to appeals filed before a quasi-judicial tribunal. In case of kumar dutta prop. K.D. Trading vs. Simplex Infrastructure Ltd. and Asha Goyal vs. Pharma traders Pvt. Ltd. NCLT has held that the provisions of section 61 of the limitation act cannot be made applicable to appeal preferred under section 61 of IBC, 2016. Appeal against approving of Resolution Plan [ Section 61(3) of IBC, 2016 ] (3) An appeal against an order approving a resolution plan under section 31 may be filed on the following grounds, namely:- (i) the approved resolution plan is in contravention of the provisions of any law for the time being in force; (ii) there has been material irregularity in exercise of the powers by the resolution professional during the corporate insolvency resolution period; (iii) the debts owed to operational creditors of the corporate debtor have not been provided for in the resolution plan in the manner specified by the Board; (iv) the insolvency resolution process costs have not been provided for repayment in priority to all other debts; or (v) the resolution plan does not comply with any other criteria specified by the Board. Appeal against the order of Liquidator order [ Section 61(4) of IBC, 2016 ] An appeal against a liquidation order passed under section 33, or sub- section (4) of section 54L, or sub- section (4) of section 54N, may be filed on grounds of material irregularity or fraud committed in relation to such a liquidation order. Appeal against the order under section 54O(2) [ Section 61(5) of IBC, 2016 ] An appeal against an order for initiation of corporate insolvency resolution process passed under section 54-O(2) may be filed on grounds of material irregularity or fraud committed in relation to such an order. Relevant Case Laws SEL Manufacturing Company Ltd. Anr. Vs. Union of India Ors. 2018 (5) TMI 576 - HC, Punjab and Haryana Dated 01.05.2018 There is a sea of difference between erroneous exercise of jurisdiction or lack of jurisdiction by a tribunal. The erroneous or failure to exercise jurisdiction by a tribunal is a ground which can effectively be taken before the Appellate Authority. Custodial Services (India) Pvt. Ltd. Vs. Metafilms (India) Ltd. [CA (AT) (Ins.) No. 183 of 2017] NCLAT Dated 16.11.2017 As per section 61(3) of the Code, an appeal is required to be filed within 30 days and the NCLAT has been empowered to condone delay not exceeding 15 days, if satisfied on the ground mentioned in the petition for condonation of delay. It was held that NCLAT has no jurisdiction to condone the delay beyond 45 days. Hindustan Oil Exploration Company Vs. Erstwhile Committee of Creditors JEKPL Pvt. Ltd. Ors. 2020 (11) TMI 551 - NCLAT Dated 17.11.2020 An unsuccessful resolution applicant has no locusto question any action of any of the stakeholders qua implementation of the approved resolution plan nor can it claim any prejudice on the pretext that any of the actions post approval of the resolution plan of successful resolution applicant in regard to its implementation has affected its prospects of being a successful resolution applicant. Surinder Kaur Ors. Vs. International Recreation and Amusement Ltd. through RP [CA (AT) (Ins.) No. 208 of 2021] NCLAT Dated 18.03.2021 There is a need to introduce provisions in the legal framework to vest power of superintendence and control qua NCLTs in the NCLAT. Adish Jain Vs. Sumit Bansal Anr. 2021 (2) TMI 120 - NCLAT Dated 03.02.2021 The NCLAT does not have an inherent power to review its own orders and that the power of review has to be granted by statute and it is not an inherent power, and therefore cannot be exercised unless conferred specifically or by necessary implications. Committee of Creditors of Leel Electricals Ltd. Vs. Arvind Mittal, IRP of Leel Electricals Ltd. [Contempt Case (AT) No. 01 of 2021 in CA (AT) (Ins.) No. 1100 of 2020] NCLAT Dated 29.01.2021 The NCLAT dropped the contempt proceedings admitted against the IRP, on an application filed by CoC as the latter was in the process of approaching IBBI for taking action against the IRP. National Spot Exchange Ltd. Vs. Mr. Anil Kohli, RP for Dunar Foods Ltd. 2021 (9) TMI 1156 - SC Dated 14.09.2021 Considering section 61(2) which provide that delay beyond 15 days in preferring the appeal is uncondonable, the same cannot be condoned even in exercise of powers under Article 142 of the Constitution. Ideal Surgical Vs. National Company Law Tribunal and Ors. [WP(C) No 8257 of 2021] HC Dated 02.07.2021 A writ petition under Article 226 of the Constitution against an order of NCLT under the Code, is not maintainable.