Rules Limitation for IBC Appeal Runs from NCLAT Order, Not Date
The has delivered an important clarification on how the for appeals under the is calculated. A Division Bench of Justice Manoj Misra and Justice Vijay Bishnoi held that the limitation for an appeal against an order of the begins from the date the order is provided to the parties under the NCLAT Rules, not from the date a is obtained.
Background of the Case
The ruling came in an appeal filed by the against an NCLAT order concerning The company had been admitted into the in . The approved a in . EPFO later passed an raising a demand of Rs 1,78,18,960 and approached the , which allowed the claim. The NCLAT, however, set aside that order, holding that EPFO could not continue assessment proceedings during the under .
EPFO then appealed to the under . The registry reported the appeal was 28 days beyond the .
The Limitation Question
The court gave EPFO an opportunity to explain the delay. EPFO argued that it received the of the NCLAT order on and had filed the appeal within 60 days from that date. It submitted that uses the phrase “,” which should mean receipt of the .
The court, however, noted that EPFO's application and additional affidavit did not disclose when it applied for the . The bench then examined , which requires the Deputy Registrar to transmit the case file and order to the registry for preparing copies and communicating them to the parties.
Key Observations
The court made two crucial observations:
“Assuming that under the , there is an obligation to provide copy of the order to the parties, the period of limitation would run from the date when the order is provided under , and not from the date when is obtained.”
The bench further explained the rationale behind this interpretation:
“Because if we assume that the limitation would run only from the date when the is received by an , the may avoid applying for a to ensure that does not commence.”
Court's Decision
The directed EPFO to file a better affidavit disclosing whether any copy of the NCLAT order was transmitted to the parties or their counsel, either through email or any other mode of communication. The matter has been listed for further hearing after two weeks, with the court granting time for the required affidavit to be submitted.
Implications
This ruling clarifies that litigants cannot postpone the start of the by delaying the procurement of a . The limitation will run from the date the order is communicated under the relevant tribunal rules, ensuring a more predictable and fair limitation framework for IBC appeals.