103-Day Delay in IBBI Appeal Dismissed Under IBC Section 61

Case Details: Insolvency and Bankruptcy Board of India vs. Truvisory Insolvency Professionals (P.) Ltd. [2026] 184 taxmann.com 11 (NCLAT- New Delhi)

Judiciary and Counsel Details

Justice Ashok Bhushan, Chairperson & Indevar Pandey, Technical Member
N. Venkatraman, Sr. Adv., Ms Amrita Singh & Prasang Sharma, Advs. for the Appellant.
Arun Kathpalia, Milan Singh Negi, Nikhil Kumar Jha, Treenok Guha, Utkarsh Mishra, Pranaya Goyal, Chiranjivi Sharma, Ms Nehal Gupta, Ms Katyayani, Ms Chitra, Ms Neharika Sharma, Ms Khyati Mehrotra, D. Arambhan, Ms Nanki Grewal, Advs., Krishnendu Dutta & Abhijeet Sinha, Sr. Advs. for the Respondent.

Facts of the Case

In the instant case, the appellant-IBBI filed an appeal challenging the NCLT’s order approving a resolution plan. The filing entailed a delay of 103 days. The IBBI filed an application seeking condonation of delay, which the Respondent No. 2 opposed on the ground that the delay exceeded the statutory outer limit of 45 days under Section 61(2) of the IBC.

The appellant contended that, by virtue of section 198’s non obstante clause, delay in filing an appeal could be condoned and that the Appellate Tribunal could exercise the Adjudicating Authority’s power; reliance was placed on section 16(4) of the IBC.

It was noted that Section 198 of the IBC can have no relevance with regard to Section 61 of the IBC, which provides for a limitation for filing an appeal. Further, it was noted that the power of condonation by the Adjudicating Authority is a clear indicator that when a function is entrusted to the Board and the same is not performed within time, it can be condoned. The purpose is that such a delay can have no fatal effect on proceedings.

NCLAT Held

The NCLAT held that the Appellate Tribunal can also exercise the jurisdiction that is vested in the Adjudicating Authority. Still, power has been given for a specific purpose and object to the relevant Adjudicating Authority, which can never be intended to contemplate condonation of delay under Section 61 of the IBC by the Appellate Tribunal.

Thus, a delay in filing an appeal beyond the condonable period could not be condoned; the 103-day delay could not be condoned.

List of Cases Reviewed

Order of National Company Law Tribunal, Mumbai in IA No.53 of 2025 in C.P. (IB) No.77/MB/2024, Dated 13.08.2025 (para 26) affirmed

List of Cases Referred to

Union of India v. Prabhakaran Vijay Kumar (2008) 9 SCC 527 (para 13)
Bank of Baroda v. MBL Infrastructures Ltd. [2022] 134 taxmann.com 190 (SC)/[2022] 170 SCL 640 (SC) (para 15)
Reserve Bank of India v. Peerless General Finance & Investment Co. Ltd. [1996] 7 SCL 126 (SC) (para 15)
Kunwer Sachdev v. IDBI Bank [2024] 159 taxmann.com 324 (Delhi)/[2024] 183 SCL 368 (Delhi) (para 17)
Hari Shankar v. Rao Girdhari Lal Chowdhury AIR 1963 SC 698 (para 21)
Shiv Shakti Coop. Housing Society, Nagpur v. Swaraj Developers (2003) 6 SCC 659 (para 22)
Malluru Mallappa v. Kuruvathappa [Civil Appeal No. 1485 of 2020, dated 12-2-2020] (para 23)
GLAS Trust Company LLC v. BYJU Raveendran [2024] 167 taxmann.com 619 (SC)/[2025] 187 SCL 14 (SC) (para 25)
Independent Sugar Corporation Ltd. v. Girish Sriram Juneja [2025] 170 taxmann.com 868 (SC) (para 25).