Section 62 of IBC : Section 62: Appeal To Supreme Court

Explanation using Example

Imagine a company, XYZ Pvt. Ltd., is undergoing corporate insolvency resolution proceedings. The National Company Law Tribunal (NCLT) passes a resolution plan, which is then challenged by a creditor of XYZ Pvt. Ltd. at the National Company Law Appellate Tribunal (NCLAT). The NCLAT upholds the resolution plan, dismissing the creditor's appeal. The creditor, believing there is a significant question of law involved in the interpretation of the resolution plan's terms, decides to appeal to the Supreme Court.

The creditor receives the NCLAT's order on January 1st and must file an appeal to the Supreme Court by February 15th, which is 45 days from the date of receipt of the NCLAT order, as per Section 62(1) of the Insolvency and Bankruptcy Code, 2016. However, due to an unforeseen circumstance, such as a natural disaster, the creditor is unable to file the appeal within the 45-day period. The creditor then files the appeal on February 20th and requests the Supreme Court to allow the late submission. The Supreme Court, after reviewing the reasons for the delay, agrees that there was sufficient cause for the delay and allows the appeal to be filed, exercising its discretion under Section 62(2), provided that this extension does not exceed a further 15 days from the initial 45-day period.