Skip to content

Insolvency and Bankruptcy - Law and Practice · Adjudication and Appeals for Corporate Persons

Appeals to NCLAT under Section 61 of the IBC

Updated 11 October 2026 · Fact-checked

Under section 61 of the IBC, any person aggrieved by an order of the Adjudicating Authority (NCLT) under this Part may appeal to the NCLAT within 30 days. The NCLAT may allow up to 15 more days for sufficient cause. An appeal against a resolution plan approval may be filed on the five grounds listed in section 61(3).

Understand Appeals to NCLAT under Section 61

The NCLT is the Adjudicating Authority for corporate persons. If it passes an order you disagree with, you do not go back to the NCLT or a civil court. Section 63 bars civil courts from matters within the jurisdiction of the NCLT or NCLAT. The route is an appeal to the National Company Law Appellate Tribunal (NCLAT).

Section 61(1) says any person aggrieved by an order of the Adjudicating Authority under this Part may appeal. It applies despite anything in the Companies Act, 2013. The test is that the order must affect you. It is not limited to the corporate debtor or the creditor who filed the case. A dissenting financial creditor, an operational creditor, a resolution applicant, a member or the resolution professional can all be aggrieved, depending on the order.

The time limit is in section 61(2): 30 days. The NCLAT may allow a late appeal if it is satisfied there was sufficient cause, but the extra period cannot exceed 15 days. So the outer limit is 45 days. Section 238A also applies the Limitation Act, 1963 to appeals before the NCLAT as far as may be, so you must read the two together.

The law lists specific grounds for some orders. Section 61(3) lists the grounds on which an appeal against an order approving a resolution plan under section 31 may be filed. There are five. An appeal against a liquidation order under section 33 (and under certain pre-pack provisions) may be filed on grounds of material irregularity or fraud in relation to that order (section 61(4)). Section 61(5) applies only to an order initiating CIRP under section 54-O(2), which is a pre-pack related order. It uses the same two grounds. Ordinary admission orders under sections 7, 9 and 10 fall under the general right of appeal in section 61(1). Section 54M applies the section 61(3) grounds to appeals against approval of a pre-packaged plan under section 54L(1).

From the NCLAT, a further appeal lies to the Supreme Court on a question of law under section 62, within 45 days from receipt of the order, with up to 15 more days for sufficient cause.

Key rules to remember

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.

How to solve Appeals to NCLAT under Section 61 questions

Use this order for any case-based question on appeals to the NCLAT. Provision, facts, conclusion.

  1. 1Identify the order challenged: who passed it, under which section, and whether it is an order of the NCLT as Adjudicating Authority under this Part.
  2. 2Identify the appellant and test whether they are a person aggrieved by that order.
  3. 3Classify the order: resolution plan approval (section 31), liquidation order (section 33), CIRP initiation under section 54-O(2) (a pre-pack related order), or any other order, including ordinary admission orders under sections 7, 9 and 10.
  4. 4Apply the correct ground rule: the five grounds of section 61(3), or material irregularity or fraud under section 61(4) or (5), or the general right to appeal under section 61(1) for other orders.
  5. 5Compute the time limit: 30 days from the order, plus up to 15 days if sufficient cause is shown. Do not go beyond 45 days.
  6. 6Apply section 238A where limitation or exclusion of time is raised.
  7. 7Conclude whether the appeal is maintainable and mention the next remedy: Supreme Court under section 62 on a question of law.

Quickest way: Order, Person, Days, Ground

When to use it: Use for short-answer or case questions where you must decide quickly if an appeal to the NCLAT is valid.

  1. Order: is it an order of the NCLT as Adjudicating Authority under this Part? If yes, section 61 applies.
  2. Person: is the appellant aggrieved by it?
  3. Days: count 30 days. Late by up to 15 days needs sufficient cause. Beyond 45 days, section 61(2) gives the NCLAT no power to extend time.
  4. Ground: resolution plan means the five section 61(3) grounds; liquidation means material irregularity or fraud; a section 54-O(2) pre-pack initiation order also means material irregularity or fraud; other orders fall under section 61(1).
  5. Write the conclusion in one line, then add the section 62 remedy.

Common mistakes in Appeals to NCLAT under Section 61

  • Saying the NCLAT can condone any delay if the cause is genuine.

    Students remember condonation from general law and forget the cap in the proviso.

    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.

    Students treat the NCLAT as a full re-hearing forum.

    Fix: Restrict yourself to the five grounds in section 61(3). A ground outside them does not fit the sub-section.

  • Applying the five resolution plan grounds to liquidation order appeals.

    Both sub-sections sit together and look alike.

    Fix: For liquidation orders, state material irregularity or fraud in relation to the order (section 61(4)).

  • Saying only the corporate debtor or the applicant creditor can appeal.

    Students read 'aggrieved' narrowly.

    Fix: Write that any person aggrieved may appeal, and show how the facts make the appellant aggrieved.

  • Appealing to the High Court or a civil court against an NCLT order.

    Confusion with the earlier winding-up regime and ordinary civil appeals.

    Fix: Cite section 63 (civil courts barred) and section 61 (NCLAT), then section 62 (Supreme Court).

  • Mixing up the 45-day Supreme Court period with the 30-day NCLAT period.

    Both have a 15-day extension, so the numbers blur.

    Fix: NCLAT: 30 + 15. Supreme Court: 45 + 15, from the date of receipt of the order.

Worked examples

Example 1

The NCLT approved a resolution plan for Sundaram Textiles Ltd on 1 March. A dissenting operational creditor, Kiran Traders, believes the plan gives it nothing and does not follow the manner specified by the Board. It files an appeal before the NCLAT on 10 April, 40 days later. Advise on maintainability.

Show the solution
  1. Provision: the order approving the plan is under section 31, so an appeal lies to the NCLAT under section 61(1) by a person aggrieved.
  2. Kiran Traders is an operational creditor affected by the plan, so it is a person aggrieved.
  3. Ground: section 61(3)(iii) allows appeal where operational creditors' debts are not provided for in the manner specified by the Board. The facts fit this ground.
  4. Time: the limit is 30 days under section 61(2). The appeal was filed on day 40, so it is 10 days late.
  5. The NCLAT may allow it if it is satisfied there was sufficient cause, as the delay of 10 days is within the 15-day cap. Without sufficient cause, it will be dismissed as time-barred.

Answer: The appeal is on a ground listed in section 61(3)(iii). It is 10 days late, so the NCLAT can hear it only if it is satisfied there was sufficient cause for the delay; the condonation cannot exceed 15 days.

Example 2

The NCLT passed a liquidation order under section 33 against Vindhya Steels Ltd. A shareholder wants to appeal because the company's business is 'still profitable'. Another shareholder alleges that the order was obtained by suppressing facts and fraud by the resolution professional. Which appeal can succeed, and what is the time limit?

Show the solution
  1. The order is a liquidation order under section 33, so section 61(4) governs the grounds.
  2. An appeal is permitted on grounds of material irregularity or fraud committed in relation to the liquidation order.
  3. The first shareholder's argument is only that the business is profitable. This is not material irregularity or fraud, so it does not fit the permitted grounds.
  4. The second shareholder alleges fraud in relation to the order, which fits section 61(4).
  5. Time: 30 days under section 61(2), extendable by up to 15 days for sufficient cause.

Answer: The appeal based on fraud (and any material irregularity) is within section 61(4). The appeal based only on profitability is not. The appeal must be filed within 30 days, extendable by up to 15 days on sufficient cause.

Exam tips

  • 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.
  • Always distinguish: resolution plan order (five grounds in section 61(3)), liquidation orders and the pre-pack CIRP initiation order under section 54-O(2) (material irregularity or fraud). Do not apply section 61(5) to ordinary admission orders under sections 7, 9 and 10.
  • End the answer with the next step: appeal to the Supreme Court under section 62 on a question of law only.

Practice questions from Adjudication and Appeals for Corporate Persons

Appeals to NCLAT under Section 61 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 under Section 61: frequently asked questions

What is the time limit for appeal to NCLAT under section 61 of the IBC?

The appeal must be filed within 30 days. The NCLAT can allow a late filing if there is sufficient cause, but the extra period cannot exceed 15 days.

What are the grounds of appeal against approval of a resolution plan?

Section 61(3) lists five: contravention of law, material irregularity by the resolution professional during CIRP, operational creditors' debts not provided for as specified by the Board, CIRP costs not provided for in priority, and non-compliance with any other criteria specified by the Board.

Who can file an appeal under section 61?

Any person aggrieved by the order of the Adjudicating Authority under this Part. The test is whether the order affects that person, not what role they played in the case.

Can I appeal to the Supreme Court after the NCLAT order?

Yes, under section 62, on a question of law arising out of the NCLAT order. The time limit is 45 days from receipt of the order, with up to 15 more days if sufficient cause is shown.