Laws, Courts & Judgments.

NCLAT Clarifies Certified Copy Requirement for Filing Appeals Under IBC

Background

In a recent judgment, the National Company Law Appellate Tribunal (NCLAT) addressed the issue of the "Certified Copy" requirement for filing appeals under Section 61 of the Insolvency and Bankruptcy Code (IBC), 2016. The case involved an appeal filed by the State Bank of India against the National Company Law Tribunal's (NCLT) rejection of its application under Section 7 of the IBC against the corporate debtor, India Power Corporation Limited.

Arguments

The key issue in the case was whether the "Free Copy" of the NCLT order provided under Rule 50 of the NCLT Rules, 2016 could be considered a valid "Certified Copy" for the purposes of filing an appeal under Rule 22(2) of the NCLAT Rules, 2016. The appellant bank argued that the Free Copy should be sufficient, while the respondent contended that a Certified Copy obtained by paying the requisite fee was mandatory.

Court's Analysis and Reasoning

The NCLAT examined the relevant provisions and precedents on the matter. It relied on the Supreme Court's rulings in Chandra Prakash v. State of U.P. and Parija 's case, which emphasized the importance of judicial discipline and the binding nature of decisions by larger benches. The NCLAT noted that its earlier judgment in Munagala Roja Harsha Vardhini v. Vardhansmart Private Limited had already settled the issue, holding that the Free Copy under Rule 50 cannot be considered a substitute for the Certified Copy required under Rule 22(2).

Decision

The NCLAT held that the Free Copy provided under Rule 50 of the NCLT Rules cannot be treated as a Certified Copy for the purposes of filing an appeal under the NCLAT Rules. The appellant's failure to obtain a Certified Copy before the expiry of the limitation period meant that the appeal was not maintainable and was barred by limitation. The NCLAT dismissed the appeal accordingly.

This judgment reaffirms the NCLAT's position on the necessity of filing a Certified Copy of the impugned order to sustain an appeal under the IBC, emphasizing the importance of following the established legal principles and procedures.