Supreme Court Enforces Strict Timelines in Insolvency Appeals
The Supreme Court ruled that the National Company Law Appellate Tribunal (NCLAT) can only condone delays in filing appeals up to 15 days, aligning with the Insolvency and Bankruptcy Code (IBC)'s strict timelines. This decision emphasizes the importance of time-bound appeals to maintain the efficiency and finality of insolvency proceedings.
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- India
The Supreme Court has made it clear that the National Company Law Appellate Tribunal (NCLAT) is restricted to condoning delays in filing appeals up to a maximum of 15 days beyond the initial deadline. This decision underlines the importance of adhering to the strict timelines set by the Insolvency and Bankruptcy Code (IBC).
A bench composed of Justices J B Pardiwala and R Mahadevan underscored that the IBC's timelines for appeals and legal actions are pivotal to prevent misuse in recovering time-barred debts. With insolvency proceedings, time is quintessential to ensure swift and certain resolutions.
The Supreme Court's decision arose from an appeal challenging an NCLAT order that had condoned a filing delay. The court reiterated that extending the delay beyond 15 days would go against legislative intent and potentially open doors to untimely and frivolous petitions, thus jeopardizing the appellate mechanism's effectiveness.
(With inputs from agencies.)
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