Drafting, Pleadings and Appearances · Applications, Petitions and Appeals under Companies Act, 2013

Appeals to NCLAT and the Supreme Court under the Companies Act, 2013

Updated 11 October 2026 · Fact-checked

Any person aggrieved by an NCLT order may appeal to the NCLAT under section 421 within 45 days of receiving the order's copy, extendable by up to 45 more days for sufficient cause. No appeal lies against a consent order. A further appeal on a question of law goes to the Supreme Court within 60 days under section 423.

Understand Appeals to NCLAT and the Supreme Court

When the National Company Law Tribunal (NCLT) decides a matter, the losing side usually has a right to challenge the order. Under the Companies Act, 2013 that challenge goes to the National Company Law Appellate Tribunal (NCLAT), constituted under section 410. It hears appeals against orders of the Tribunal and of the National Financial Reporting Authority.

Section 421(1) gives the right to any person aggrieved by an order of the Tribunal. You do not have to be a party named in the order. You must show that the order affects you. There is one bar: under section 421(2), no appeal lies from an order made with the consent of parties. Parties who agreed to the order cannot then challenge it.

Time matters. The appeal must be filed within 45 days from the date a copy of the order is made available to the aggrieved person. The clock runs from when the copy is made available, not from the date of the order. The NCLAT may condone delay for a further period not exceeding 45 days if the appellant shows sufficient cause. Beyond that outer limit, the proviso gives no power to admit the appeal. The Limitation Act, 1963 applies as far as may be (section 433).

On receipt of the appeal, the NCLAT gives the parties a reasonable opportunity of being heard and passes orders confirming, modifying or setting aside the order appealed against (section 421(4)). It sends a copy of its order to the Tribunal and the parties. It does not follow the Code of Civil Procedure strictly, but is guided by natural justice and has civil court powers on listed matters (section 424).

The last rung is the Supreme Court. Under section 423, any person aggrieved by an NCLAT order may appeal on a question of law arising out of the order, within 60 days of receiving it, extendable by up to 60 more days for sufficient cause. In the exam, you are asked to draft or advise on exactly this chain: who, where, within what time, in what form.

Key rules to remember

Appeal to NCLAT (section 421(1)): Any person aggrieved by an order of the Tribunal → appeal to NCLAT; The right is given to any aggrieved person, not only parties to the original case.
Bar on consent orders (section 421(2)): Order made with consent of parties → no appeal to NCLAT; Applies only where the Tribunal's order was made with the consent of the parties.
Limitation for NCLAT appeal (section 421(3)): 45 days from date copy of order is made available + condonation up to 45 more days (sufficient cause); Maximum 90 days in all. Form and fees are as prescribed.
Disposal timeline (section 422): Endeavour to dispose of within 3 months of filing; extension up to 90 days after recording reasons; It is an endeavour, not a strict bar. Reasons must be recorded; the Chairperson may extend.
Appeal to Supreme Court (section 423): 60 days from receipt of NCLAT order + up to 60 more days (sufficient cause); only on a question of law; Maximum 120 days in all. Facts cannot be re-argued.
Applicable procedure (sections 424 and 433): Natural justice + own procedure; civil court powers; Limitation Act, 1963 applies as far as may be; CPC does not bind the NCLAT, but its orders are enforceable like a decree.

How to solve Appeals to NCLAT and the Supreme Court questions

Use this sequence for any question that asks you to advise on, or draft, an appeal against an NCLT or NCLAT order.

1Identify the order and the forum that passed it. If it is an NCLT order under the Act, the appeal lies to the NCLAT under section 421. If it is an NCLAT order, the appeal lies to the Supreme Court under section 423.
2Check the right to appeal. Is your client a person aggrieved? Was the order made with the consent of parties? If yes, section 421(2) bars the appeal.
3Compute limitation. Start from the date the copy of the order was made available to the client, not the date of the order. Add 45 days (NCLAT) or 60 days (Supreme Court).
4If the time has run out, check the condonation window: up to 45 more days for NCLAT, up to 60 more for the Supreme Court. Sufficient cause must be shown. Beyond the window, the appeal cannot be entertained.
5Frame the grounds. For NCLAT, you may attack facts and law. For the Supreme Court, grounds must raise a question of law arising out of the order.
6Draft the memorandum: forum and cause title, appellant and respondent details, impugned order, limitation statement, facts in brief, grounds, prayer, verification and signature. Attach the certified copy of the order, fees and any condonation application with affidavit.
7Add interim relief if needed, such as a stay of the order, as a separate application. Conclude with a clear statement of the result.

Quickest way: Four-line check: who, where, when, what

When to use it: Use it when a case-based question asks only whether an appeal is maintainable or in time.

Who: aggrieved person? Not a consent order?
Where: NCLT order → NCLAT (section 421); NCLAT order → Supreme Court (section 423).
When: 45 + 45 days for NCLAT; 60 + 60 days for the Supreme Court, counted from receipt of the copy.
What: NCLAT hears facts and law; the Supreme Court hears only a question of law. State the conclusion in one line.

Common mistakes in Appeals to NCLAT and the Supreme Court

Counting the 45 days from the date of the order.
Students assume limitation always starts on the date of judgment.
Fix: Section 421(3) runs from the date a copy of the order is made available to the aggrieved person. Use that date, and say so.
Allowing condonation beyond 45 extra days for an NCLAT appeal.
Students remember 'sufficient cause' but forget the cap.
Fix: The proviso allows a further period not exceeding 45 days. State the 90-day outer limit and conclude the appeal cannot be entertained after it.
Advising an appeal against a consent order.
The facts in the question bury the words 'with the consent of both parties'.
Fix: Scan every fact pattern for consent. Section 421(2) bars the appeal.
Raising factual grounds in the Supreme Court appeal.
Students treat every appeal as a full rehearing.
Fix: Section 423 allows appeal only on a question of law arising out of the NCLAT order. Frame each ground as a legal question.
Mixing up the Supreme Court period (60 days) with the NCLAT period (45 days).
Both are tied to receipt of the order and look alike.
Fix: Memorise the pairs: 45 + 45 and 60 + 60.
Leaving out the limitation statement and the prayer in the draft memorandum.
Students focus on facts and grounds and run short of time.
Fix: Keep a fixed template. Include a short paragraph showing the appeal is within time, and a specific prayer to set aside or modify the order.

Worked examples

Example 1

Sunrise Textiles Ltd., Surat, received a copy of an NCLT order on 10 March 2027 rejecting its application. It files an appeal before the NCLAT on 20 May 2027 with an application showing sufficient cause for delay. Advise whether the appeal can be entertained.

Show the solution

The appeal lies to the NCLAT under section 421(1), as the company is a person aggrieved by an NCLT order.
The 45-day period runs from 10 March 2027. March has 31 days, so 21 days of March remain after the 10th. Adding 24 days of April gives 45 days at 24 April 2027. (21 + 24 = 45.)
The appeal on 20 May 2027 is late. Days from 24 April to 20 May: 6 days left in April plus 20 in May = 26 days beyond the 45-day period.
The proviso permits delay of up to 45 days beyond the 45-day period, if sufficient cause is shown. 26 days is within that limit.
So the NCLAT has power to entertain the appeal if it is satisfied there was sufficient cause.

Answer: The appeal is 26 days beyond the 45-day period, which is within the further 45 days allowed by the proviso to section 421(3). It can be entertained if the NCLAT is satisfied that sufficient cause prevented timely filing.

Example 2

Draft the key parts of a memorandum of appeal by Rohit Mehra, a shareholder, against an NCLT order dated 5 April 2027 dismissing his petition against the company, Mehra Agro Ltd. Also state the forum and time limit.

Show the solution

Forum and provision: the appeal lies to the NCLAT under section 421(1), as Rohit Mehra is aggrieved by the Tribunal's order. The order was not made by consent.
Time limit: 45 days from the date the copy of the order is made available to him, extendable by up to 45 days for sufficient cause.
Cause title: Before the National Company Law Appellate Tribunal, Company Appeal (AT) No. ___ of 2027. Rohit Mehra ... Appellant versus Mehra Agro Ltd. and others ... Respondents.
Opening: Appeal under section 421 of the Companies Act, 2013 against the order dated 5 April 2027 passed by the NCLT in Company Petition No. ___.
Body: a limitation paragraph (copy received on ___, appeal filed within 45 days); brief facts; grounds, for example that the Tribunal ignored material evidence and misapplied the law.
Prayer: set aside the impugned order; grant the reliefs sought before the Tribunal; pass such other order as the NCLAT thinks fit. Add a stay application if needed.
Close with date, place, signature of appellant or authorised representative, verification and an index of annexures: certified copy of the order, fee proof, authority letter.

Answer: The appeal is filed before the NCLAT under section 421 within 45 days (extendable by up to 45 days) of the copy of the order being made available. The memorandum contains cause title, limitation paragraph, facts, grounds, prayer, verification and annexures.

Exam tips

In case-based questions, mark the date the copy of the order was made available. Most marks are lost on limitation arithmetic.
Always quote the section: 421 for NCLAT, 423 for the Supreme Court. State the rule first, then apply facts, then conclude.
When asked to draft, follow a fixed order: cause title, provision, limitation, facts, grounds, prayer, verification, annexures. Write in formal legal language.
Check each fact pattern for a consent order and for whether the question is a pure question of law. Both decide maintainability.
Mention that the Limitation Act, 1963 applies as far as may be (section 433), and that the NCLAT follows natural justice rather than strict CPC procedure (section 424).

Practice questions from Applications, Petitions and Appeals under Companies Act, 2013

Appeals to NCLAT and the Supreme Court in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Appeals to NCLAT and the Supreme Court: frequently asked questions

What is the time limit to file an appeal before NCLAT under section 421?

45 days from the date a copy of the Tribunal's order is made available to the aggrieved person. The NCLAT may allow a further period of up to 45 days if sufficient cause is shown. It cannot go beyond that.

Can a person who was not a party to the NCLT case file an appeal?

Section 421(1) allows any person aggrieved by an order of the Tribunal to appeal. The test is whether the order affects that person, not whether they were a named party.

Can I appeal to the NCLAT against a consent order?

No. Section 421(2) states that no appeal lies to the Appellate Tribunal from an order made by the Tribunal with the consent of parties.

What is the time limit for appeal to the Supreme Court from an NCLAT order?

60 days from the date of receipt of the NCLAT order, extendable by up to 60 more days if the Supreme Court is satisfied there was sufficient cause. The appeal lies only on a question of law arising out of the order.

Does the NCLAT have to decide appeals within a fixed time?

Section 422 requires every endeavour to dispose of an appeal within three months of filing. If it is not disposed of in that time, reasons must be recorded and the Chairperson may extend the period by up to 90 days.