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

Bharat Steels Ltd. lost before the NCLAT. Its board wants to appeal to the Supreme Court contending that the NCLAT wrongly appreciated the factual evidence on the quality of supplies. Under section 423, what is the correct view?

An appeal to the Supreme Court under section 423 lies only on a question of law arising out of the NCLAT order. A complaint merely about how factual evidence was appreciated is not a question of law, so the intended ground is not sufficient.

  1. AThe appeal is maintainable on any ground, including facts
  2. BThe appeal is maintainable only on a question of law arising out of the orderCorrect
  3. CThe appeal is maintainable only if the Central Government permits
  4. DThe appeal is maintainable only on questions of fact

Explanation

Section 423 permits an appeal to the Supreme Court only on a question of law arising out of the NCLAT order. A challenge purely to appreciation of factual evidence does not qualify, so the board's ground as framed is not a valid basis.

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