Corporate insolvency - The Legal Chamber

Supreme Court Ruling: No Certified Copy, No Appeal – NCLAT’s Order Set Aside on Technical Ground

15Sep

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Supreme Court

Supreme Court Ruling: No Certified Copy, No Appeal – NCLAT’s Order Set Aside on Technical Ground

The Supreme Court held that an appeal against an NCLT order under the IBC must be filed within 30 days from the date of its pronouncement. It reiterated that mandatory filing of a certified copy of the impugned order is integral to a valid appeal, and non-compliance renders the appeal barred by limitation. Facts Of The Case: The case originated from an order dated June 23, 2023, passed by the National Company Law Tribunal (NCLT), Mumbai Bench, which approved a resolution plan submitted by Ashdan Properties Pvt. Ltd. in the corporate insolvency resolution process of the corporate debtor. The respondent, DSK Global Education and Research Pvt. Ltd., being aggrieved by this order, filed an appeal before the National Company Law Appellate Tribunal (NCLAT) challenging the NCLT's decision. The ...

Supreme Court Quashes FIR in Loan Case, Says Mere Default Doesn’t Make It a Crime

The Supreme Court held that a loan transaction creates a debtor-creditor relationship, and a mere breach of its terms does not automatically constitute criminal breach of trust under Section 405 IPC without evidence of dishonest intention. The Court clarified that such disputes, arising from commercial transactions, are primarily civil in nature and a preliminary inquiry is permissible before registering an FIR. Facts Of The Case: The appellant, a director of M/s Benlon India Ltd., availed three loans from the first respondent, Hero Fincorp, for purchasing machinery. While the first two loans were used for the intended purpose, a fire destroyed the plant shortly after the disbursement of the third loan. Consequently, this third loan was converted into an unsecured corporate loan. Benlon ...

Supreme Court Clarifies IBC Appeal Deadlines: No Delay Condonation Beyond 45 Days

The Supreme Court held that appeals under Section 61(2) of the Insolvency and Bankruptcy Code (IBC) must strictly adhere to the 30-day limitation period, extendable by only 15 days upon showing "sufficient cause." The NCLAT cannot condone delays beyond this 45-day window, as the IBC’s time-bound framework overrides equitable considerations. Facts Of The Case: Tata Steel’s resolution plan for Rohit Ferro-Tech Ltd. was approved by the NCLT on 07.04.2022. Respondent No. 1, a minority shareholder, filed an appeal before the NCLAT on 23.05.2022 (e-filing) and 24.05.2022 (physical filing), seeking condonation of a 15-day delay. The NCLAT allowed the delay, citing Section 4 of the Limitation Act, 1963, as the 30-day period ended on a court holiday (08.05.2022, a Sunday). Tata Steel challenged t...