Supreme Court Clarifies IBC Appeal Limitation
The Supreme Court has delivered a significant ruling on IBC appeal limitation, holding that a defective appeal filed under Section 62 of the Insolvency and Bankruptcy Code, 2016 cannot be refiled after the expiry of the 28-day period prescribed under the Supreme Court Rules, 2013 for curing defects. The Court ruled that once the statutory timeline and the defect-curing period expire, the right to appeal stands extinguished.
A Bench of Justices Dipankar Datta and Satish Chandra Sharma delivered the judgment in CA Ramchandra Dallaram Choudhary v. Adani Infrastructure and Developers Private Limited on June 1, 2026. The appeal challenged a December 8, 2025 order of the National Company Law Appellate Tribunal (NCLAT).
Background of the Case
The liquidator of a corporate debtor filed the appeal under Section 62 of the IBC.
The appellant presented the appeal on January 29, 2026 within the additional 15-day condonable period under Section 62(2). However, the Registry reported a delay of seven days and also pointed out several defects.
After receiving the defect notice, the appellant cured the defects and refiled the appeal after an additional delay of 82 days.
The appellant then filed separate applications seeking condonation of delay in filing as well as refiling.
The Supreme Court clarified that the issue before it concerned the maintainability of delayed refiling and not the merits of the NCLAT judgment.
Appellant’s Arguments
Senior Advocate Mr. Fernandes argued that the appellant acted as a neutral officer under the supervision of the Court for the benefit of stakeholders and the corporate debtor.
He urged the Court to adopt a liberal approach while considering the delay.
He further argued that although the Supreme Court Rules prescribe 28 days for curing defects, they do not impose an absolute bar on condoning delays in refiling.
According to him, the Court retained discretion to condone refiling delay if sufficient cause existed.
He also relied on an earlier Supreme Court decision involving the same parties where the Court had condoned delay in refiling an appeal before the NCLAT under Section 61 of the IBC.
Supreme Court on IBC Timelines
The Bench emphasised that the IBC creates a strict and time-bound framework for insolvency proceedings.
The Court observed that Section 62 requires parties to file appeals within 45 days. It may extend the period by only 15 additional days upon showing sufficient cause.
Beyond 60 days, the Court lacks jurisdiction to condone delay.
The Bench relied on several earlier judgments that stressed strict compliance with limitation periods under the IBC.
The Court rejected the argument that litigants can preserve limitation by filing defective appeals and curing defects later at their convenience.
It observed that such a practice would defeat the legislative objective of speedy insolvency resolution.
Findings on Refiling Delay
The Supreme Court held that permitting delayed refiling would undermine the principle of expedition embedded in the IBC.
The Bench ruled that once the statutory 60-day period under Section 62 expires, followed by the 28-day period available for curing defects under the Supreme Court Rules, the right to appeal comes to an end.
It further held that no application seeking condonation of refiling delay remains maintainable after expiry of those periods.
The Court also rejected the submission that a liquidator deserves relaxation of statutory timelines because of his official position.
The Bench held that Article 142 of the Constitution cannot override express statutory mandates. It added that the IBC does not create a separate standard for liquidators.
Earlier Relief Not a Precedent
The Court distinguished its earlier 2025 judgment involving the same parties.
It noted that the previous case dealt with delay in refiling before the NCLAT under Section 61 of the IBC and specifically directed that the order should not operate as a precedent.
The Bench observed that a litigant who once receives indulgence cannot expect similar relief at every appellate stage.
It warned that repeated condonation would make limitation provisions under the IBC progressively elastic and frustrate the legislative objective of certainty and finality.
Final Directions
Summarising the legal position, the Supreme Court held that an appeal under Section 62 of the IBC must be filed within 45 days from receipt of the impugned order.
The Court may grant only an additional 15 days upon sufficient cause being shown.
A party may cure defects within 28 days after the Registry notifies them.
However, the Court held that IBC appeal limitation leaves no scope for curing defects after expiry of the 28-day period.
Accordingly, the Bench dismissed the appeal as time-barred and held that the explanations offered for the filing and refiling delays did not establish sufficient cause. The Court also dismissed all connected applications.
