Case at a glance: The Supreme Court has dismissed a tax department's appeal under Section 62 of the IBC as time-barred. It held that limitation runs from the pronouncement of the NCLAT order, and Section 12(2) of the Limitation Act excludes only the time actually taken to obtain a certified copy, not the time a party waits before applying for it. The appeal was 16 days beyond the 60-day outer limit.
The corporate debtor, a glass container maker, went into CIRP on a bank's petition. The tax department claimed about Rs 22.6 crore, but the resolution plan approved by NCLT Hyderabad gave it about Rs 1.35 lakh. NCLAT Chennai upheld the plan on 2 August 2023.
The department applied for a certified copy only on the 35th day, received it on 11 October 2023, and filed its Section 62 appeal on 21 November 2023. It argued that limitation runs from the “receipt” of the order.
The Key Question Before the Court
Does the limitation period for a Section 62 IBC appeal run from pronouncement of the NCLAT order or from receipt of a certified copy?
Pronouncement Starts the Clock
The Court held that limitation runs from pronouncement, which under Rule 91 of the NCLAT Rules is the reading of the operative portion in open court. Section 12(2) of the Limitation Act, applied through Section 238-A IBC, excludes only the time needed to obtain the copy, not the period of inaction before applying (para 12).
It distinguished Sagufa Ahmed, which rested on a statutory right to a free certified copy under the Companies Act, because the Supreme Court Rules place a positive duty on the appellant to apply. Counting 35 days before applying and 41 days after receipt gave 76 days, beyond the 60-day ceiling. It relied on V. Nagarajan v. SKS Ispat and CA Ramchandra Dallaram Choudhary v. Adani Infrastructure.
What the Court Actually Held
- Preliminary objection sustained; the appeal dismissed as barred by limitation.
- Limitation for Section 62 appeals runs from pronouncement.
- Section 12(2) excludes only the time to obtain the copy after applying.
- No costs.
Why This Judgment Matters
- It reaffirms strict timelines in IBC appeals.
- It warns government departments and creditors not to delay applying for certified copies.
- It confirms V. Nagarajan and the 2026 Adani ruling.
What Should Advocates Take Away From the Judgment?
For Appellants' Counsel
- Apply for the certified copy immediately after pronouncement.
- Track the 45-day period and the 15-day condonable window carefully.
For Respondents' Counsel
- Raise limitation as a preliminary objection with a day-by-day computation.
Key Takeaways
- Limitation runs from pronouncement.
- Delay before applying for a copy is not excluded.
- The 60-day outer limit is strict.
- The appeal was dismissed.
Frequently Asked Questions
From the pronouncement of the NCLAT order, according to this ruling.
Only the time taken after applying, under Section 12(2) of the Limitation Act.
The appeal was filed after 76 days, 16 days beyond the 60-day outer limit.
Conclusion
The ruling, consistent with earlier Supreme Court authority, makes IBC timelines unforgiving for late appellants.
Practical takeaway: Apply for the certified copy on the day of pronouncement and calendar the 45-plus-15-day limit.