Section 61 of IBC : Section 61: Appeals And Appellate Authority

Explanation using Example

Imagine a company, XYZ Pvt. Ltd., is undergoing a corporate insolvency resolution process (CIRP). The National Company Law Tribunal (NCLT) approves a resolution plan for XYZ Pvt. Ltd. However, an operational creditor, who is owed a significant sum by XYZ Pvt. Ltd., finds that the resolution plan does not provide for the repayment of its debts as specified by the Insolvency and Bankruptcy Board of India.

The operational creditor believes this is in contravention of the law and decides to appeal against the NCLT's order. According to Section 61 of the Insolvency and Bankruptcy Code, 2016, the creditor files the appeal with the National Company Law Appellate Tribunal (NCLAT) within the stipulated time frame of thirty days. The creditor cites the ground that the resolution plan has not provided for the debts owed to them in the manner specified by the Board, as mentioned in Section 61(3)(iii).