NCLAT Extends Benefit Of Limitation Computation To Appeals Filed Between 01.11.2022 To 23.12.2022

On 24.12.2022 the National Company Law Appellate Tribunal (“NCLAT”) had issued fresh directions for computation of limitation for filing of appeals before NCLAT. Earlier the benefit of order dated 24.12.2022 was only available to appeals filed on and after 24.12.2022. However, the NCLAT vide an Order dated 21.02.2023 has extended the benefit of Order dated 24.12.2022 to appeals which have been filed between 01.11.2022 to 23.12.2022. The conditions of limitation computation would remain same as given in Order dated 24.12.2022. Directions For Computation Of Limitation On 24.12.2022, the NCLAT had issued fresh directions for computation of limitation for filing of appeals before NCLAT. The directions are as follows: The Limitation shall be computed from the date of e-filing. The hard copy has to be filed within 7 days of e-filing. However, the Competent Authority is at liberty to notify to extend the period of filing hard copy in case of any unforeseen exigency. In a case where hard copy is filed after 7 days, the appeal will be placed before the Tribunal for appropriate order. The requirement of filing Appeals by electronic mode shall continue along with mandatory filing of the Appeals as per Rule 22 of the NCLAT Rules, 2016. The NCLAT Order dated 24.12.2022 supersedes Order dated 21.10.2022 and had come into force with immediate effect. The directions were effective from 24.12.2022 onwards and now would also be applicable to appeals filed between 01.11.2022 to 23.12.2022. NCLAT has also recalled its previous circular dated 21.10.2022 bearing F.No.10/37/2018-NCLAT regarding computation of limitation. Brief Background The Rule 22 of the NCLAT Rules, 2016 provides for “Presentation of appeal”, which is to be made at the filing counter of the NCLAT. As per Rule 103 of the NCLAT Rules, 2016, NCLAT has also permitted filing of the Appeal or proceedings through electronic mode (e-filing). Standard Operating Procedure (SOP) dated 03.01.2021 regarding e-filing provides: “It may be noted that it is mandatory that Ld. Advocates/ Authorised Representatives/ Parties-in-Person shall file the Appeal/Interlocutory Application/Reply/ Rejoinder etc. in hard copy also as per the procedure prescribed in NCLAT Rules, 2016 along with the e-filing receipt. The online filing & hard copies must match with proper pagination. The Court Fee shall be paid through Bharat Kosh (https://bharatkosh.gov.in ) and the payment receipt should be attached.” However, the NCLAT SOPs and directions do not contain any direction with regard to computation of limitation, whether limitation is to be computed from the date of e-filing of the Appeals or from the date when Appeals are presented before the NCLAT as per Rule 22. On 21.10.2022 the Competent Authority issued directions that the period of limitation shall be computed from the date of presentation of Appeal as per Rule 22 of the NCLAT Rules, 2016. Later it was observed that Appeals are e-filed from different parts of the country where the appellant is often located in far-away places and time is taken to file physical copy. Hence, on 24.12.2022 the NCLAT has withdrawn the earlier order dated 21.10.2022 and issued fresh guidelines for computation of limitation. F.No. 23/4/2022-Estt./NCLAT Click Here To Read/Download Direction

NCLAT Extends Benefit Of Limitation Computation To Appeals Filed Between 01.11.2022 To 23.12.2022

Pallavi Mishra

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