IBC, 2016 : NCLAT Explains the Limitation in Cases under Insolvency and Bankruptcy Code, 2016

IBC, 2016 : NCLAT Explains the Limitation in Cases under Insolvency and Bankruptcy Code, 2016

In an interesting case decided in the year 2025, the principles that affect time limit under IBC, 2016 has been laid down.

In this case, appeal was filed against an Order which was pronounced  on 31.03.2023 and e-filing was done on 29 May 2023.  It was held that after pronouncing of the order, limitation commenced and that shall continue and cannot be held to be arrested till appellant came to know about the order. 

The appellant argued that appellant was not party to the proceeding. It was held that appellants were stakeholder in the CIRP and they have already filed claim and treatment of the claim was there in the resolution plan which was approved on 31.03.2023 ; anyone who is aggrieved by the order including the stakeholders in the CIRP have to file an appeal within the time as prescribed under Section 61 of the Insolvency and Bankruptcy Code, 2016. 

The decision sets the right principle that a litigant cannot be granted benefit of its ignorance. It is for the litigant to keep a track of the litigation in which it is involved/affected. 

Now that it has established in this case that Tax Department's appeal was dismissed because of lapse committed by Tax Department employees in not being diligent, it would be proper that some concrete disciplinary action should be initiated against concerned Tax Department employees. 

Case reference is Department of CGST v. Satyendra P. Khorania [2025] GCtR 1841 (NCLAT).