Adjudication and Appeals for Corporate Persons: formula sheet

Key formulas

Forum for corporate persons

Adjudicating Authority = NCLT with territorial jurisdiction over the registered office

Section 60(1). Applies to corporate debtors and their personal guarantors.

Guarantor proceedings

Corporate debtor's CIRP/liquidation pending before NCLT → guarantor application filed before the same NCLT

Section 60(2). Pending proceedings elsewhere stand transferred under section 60(3).

Scope of jurisdiction

Applications, claims (incl. Indian subsidiaries) and questions of priority, law or fact arising out of the process

Section 60(5), notwithstanding any other law.

Exclusion of civil courts

No civil court or authority can hear matters within NCLT/NCLAT jurisdiction under the Code

Section 63.

Limitation during moratorium

Moratorium period is excluded in computing limitation

Section 60(6), for suits or applications by or against the corporate debtor under a moratorium order.

Time-limit relaxation and injunctions

Delay needs recorded reasons; extension up to 10 days; no injunction against actions under the Code

Section 64. Extension is by the President of NCLT or Chairperson of NCLAT.

Who may appeal (s 61(1))

Any person aggrieved by an order of the Adjudicating Authority under this Part → NCLAT

Applies notwithstanding the Companies Act, 2013.

Time limit (s 61(2))

30 days + condonation up to 15 days = 45 days maximum

Condonation only if the NCLAT is satisfied of sufficient cause. Section 238A also applies the Limitation Act, 1963.

Grounds against resolution plan approval (s 61(3))

(i) plan contravenes any law; (ii) material irregularity by the RP during CIRP; (iii) operational creditors' debts not provided for as specified by the Board; (iv) CIRP costs not provided for in priority to all other debts; (v) plan fails any other criteria specified by the Board

Section 61(3) lists the grounds on which an appeal against a section 31 order may be filed.

Liquidation order appeal (s 61(4))

Ground: material irregularity or fraud in relation to the liquidation order

Covers orders under section 33, section 54L(4) and section 54N(4).

CIRP initiation order under s 54-O(2) (s 61(5))

Ground: material irregularity or fraud in relation to the order

Applies only to an order initiating CIRP under section 54-O(2), a pre-pack related order. Ordinary admission orders under sections 7, 9 and 10 fall under the general right in section 61(1).

Further appeal (s 62)

NCLAT → Supreme Court on a question of law within 45 days of receipt; up to 15 more days for sufficient cause

Only a question of law arising out of the order.

Appeal from NCLAT to Supreme Court (section 62(1))

Any aggrieved person → Supreme Court → only on a question of law → within 45 days from receipt of the NCLAT order

Appeal lies against an NCLAT order under the Code. Facts are not re-examined.

Extension by Supreme Court (section 62(2))

45 days + up to 15 days = maximum 60 days from receipt

Only if the Supreme Court is satisfied that sufficient cause prevented filing within 45 days. The extension cannot exceed 15 days.

Appeal to NCLAT (section 61) for comparison

30 days + up to 15 days (sufficient cause) = maximum 45 days

Open to any person aggrieved by an order of the Adjudicating Authority under Part II.

Individuals and firms: DRAT to Supreme Court (section 182)

DRAT order → Supreme Court → question of law → 45 days + up to 15 days

DRT to DRAT is under section 181: 30 days + up to 15 days.

Limitation Act (section 238A)

Limitation Act, 1963 applies, as far as may be, to proceedings or appeals before the NCLT, NCLAT, DRT and DRAT

The section names these four bodies. The Supreme Court appeal periods are those in sections 62 and 182.

Section 238A rule

Limitation Act, 1963 applies "as far as may be" to proceedings/appeals before NCLT, NCLAT, DRT, DRAT

Applies to proceedings and appeals, not only to appeals. It is not an automatic or unlimited import.

Appeal period under Section 61(2)

Appeal to NCLAT within 30 days

Counted as the Code provides. Check the date of the order and the date of filing.

Condonation proviso to Section 61(2)

Sufficient cause + extra period not exceeding 15 days

Outer limit is 30 + 15 = 45 days. NCLAT cannot condone beyond that under this proviso.

Section 198

Board fails to act within the Code's period → Adjudicating Authority may condone delay, reasons in writing

Concerns delay by the Board only.

Moratorium exclusion

Section 60(6) (corporate debtor); Section 179(3) (individual debtor): moratorium period excluded in computing limitation

Applies to suits or applications by or against the debtor for which a moratorium order has been made.

Section 7 timing rules

Adjudicating Authority ascertains default within 14 days; rectify defects within 7 days of notice; communicate order within 7 days

These are Code timelines. They are different from the limitation period for filing the application.

Quick revision

• Under Section 60, the NCLT with territorial jurisdiction over the registered office is the Adjudicating Authority for corporate persons.
• The NCLT's jurisdiction under Section 60(5) covers applications, claims and questions of priorities, law or facts arising from the insolvency or liquidation.
• Under Section 60(6), the period of a moratorium is excluded when computing limitation for suits or applications by or against the corporate debtor.
• Section 61: an appeal from the NCLT goes to the NCLAT within 30 days.
• The NCLAT may allow a delay beyond 30 days for sufficient cause, but the extra period cannot exceed 15 days.
• Section 61(3) lists five grounds for appealing against an order approving a resolution plan.
• Appeals against liquidation orders and orders initiating the process under the cited provisions lie on grounds of material irregularity or fraud.
• Section 62: appeal to the Supreme Court lies only on a question of law, within 45 days of receipt of the NCLAT order.
• The Supreme Court may allow a further period of up to 15 days for sufficient cause.
• Section 238A applies the Limitation Act, 1963 to proceedings and appeals, as far as may be.
• Section 42: a creditor may appeal to the Adjudicating Authority against the liquidator's decision on claims within 14 days of receipt.
• Section 63 bars civil courts from matters within the jurisdiction of the NCLT or NCLAT under the Code.

Common mistakes

• Choosing the bench by the location of the creditor, factory or business activity. Fix: Section 60(1) uses the place of the registered office. Write that phrase.
• Sending a personal guarantor of a corporate debtor to the DRT. Fix: Section 60(1) names personal guarantors of corporate debtors under the NCLT. Section 179 is subject to section 60.
• Saying the NCLAT can condone any delay if the cause is genuine. Fix: Write that the extension cannot exceed 15 days under the proviso to section 61(2), so 45 days is the outer limit.
• Listing grounds such as 'the plan is commercially unwise' against a section 31 order. Fix: Restrict yourself to the five grounds in section 61(3). A ground outside them does not fit the sub-section.
• Saying the Supreme Court hears appeals on facts and merits from the NCLAT. Fix: Write that section 62 is confined to a question of law arising out of the NCLAT order.
• Applying the 30-day limit to the Supreme Court appeal. Fix: Link 30 days to the NCLAT (section 61) and 45 days to the Supreme Court (sections 62 and 182).
• Saying the NCLAT can condone any delay if the cause is good. Fix: Always add: the extra period shall not exceed 15 days, so the outer limit is 45 days.
• Saying the Limitation Act applies in full to the Code. Fix: Quote the phrase. The Act applies only to the extent it suits the Code and does not override the Code's specific time rules.

Exam tips

• Quote the section number with the sub-section. Examiners reward section 60(1), 60(2), 60(5) and 63 used precisely.
• In case questions, write the registered office as the connecting fact before naming the bench.
• Always add the next step, which is the appeal to the NCLAT under section 61, within thirty days (extendable by up to fifteen days for sufficient cause).
• Contrast clearly: NCLT for corporate persons (section 60), DRT for individuals and firms (section 179).
• Use the format: provision, facts, conclusion. Keep each part to a few lines.
• Quote the section number with the sub-section. Examiners reward 'section 61(3)(iv)' over 'the Code says'.
• In case questions, count the days from the order. Then say whether condonation is needed and whether it falls within the 15-day cap.
• Write the five section 61(3) grounds in a short list. Do not paraphrase them so loosely that the meaning shifts.