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

Rahul Finance, a financial creditor, is aggrieved by an NCLAT order on the approval of a resolution plan. It wants to appeal to the Supreme Court only because it disagrees with the NCLAT's appreciation of the commercial value of the plan, with no legal issue involved. Under section 62, what is the position?

The appeal lies only on a question of law arising out of the NCLAT order. Section 62(1) restricts Supreme Court appeals to legal questions, so mere disagreement with commercial or factual assessment of the plan gives no ground for appeal.

  1. AThe appeal lies on any ground, including facts
  2. BThe appeal lies only on a question of law arising out of the orderCorrect
  3. CThe appeal lies only if the amount exceeds a prescribed threshold
  4. DThe appeal lies only with prior permission of the NCLAT

Explanation

Section 62(1) allows an appeal to the Supreme Court only on a question of law arising out of the NCLAT order under the Code. A pure disagreement on commercial or factual assessment raises no question of law, so it does not qualify.

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