The National Company Law Appellate Tribunal (“NCLAT”), New Delhi, in BSE Limited. v. Mrudula Brodie, Company Appeal (AT) (Insolvency) No. 1862 of 2024 & Interlocutory Application No.6846 of 2024 addressed whether the 15-day condonable period under Section 61(2) of the Insolvency and Bankruptcy Code, 2016 (“IBC”), can be extended if the last day falls on a court holiday. NCLAT clarified that statutory timelines under IBC must be strictly followed and that procedural relaxations under the Limitation Act or NCLAT Rules, 2016 do not apply to condonable periods.  

Facts of the Case

BSE Limited and National Stock Exchange of India Limited (“NSE”) filed appeals against a National Company Law Tribunal, Mumbai order dated July 31, 2024 (“Impugned Order”). The appeals were filed beyond the prescribed 30-day limitation period, requiring condonation of delay. The primary issue before the court was the condonation of delay in filing these appeals. BSE’s appeal was filed within the additional 15-day condonable period, while NSE’s appeal was beyond it. BSE argued that since the last day of its condonable period fell on a holiday, it should be permitted to file on the next working day.  

Key Issues

The NCLAT considered two primary questions:

1. Whether the 15-day condonable period under Section 61(2) of IBC extends when the last day falls on a court holiday.

2. Whether the 30-day limitation period excludes days when the Tribunal is closed.

Relevant Provisions

1. Section 61(2) of IBC: Establishes the 30-day limitation period with a 15-day condonable extension.

2. Section 4 of Limitation Act: Addresses court closure scenarios.

3. Rule 3 of NCLAT Rules, 2016: Governs time period computations.

Submissions before NCLAT

1. Appellant’s Arguments (BSE & NSE)  

BSE contended that the Limitation Act allows filings on the next working day if the last day falls on a holiday. It also argued that procedural rules should permit an extension for filings if the Tribunal is closed. BSE cited internal delays due to procedural requirements in filing the appeal. NSE argued that the IBC should be interpreted in a manner that allows flexibility in condoning delays, especially in complex financial matters.  

2. Respondents’ Arguments  

The Respondents emphasized that IBC follows a strict timeline for appeals to ensure speedy resolution of insolvency matters. They contended that the IBC is a special law and overrides the Limitation Act’s provisions where specific time limits are prescribed. Since NSE’s appeal was filed beyond the additional 15-day period, they argued that there was no scope for condonation.  

Principal Findings of the Tribunal

1. On the 15-day Condonable Period

The Tribunal held that: 

a. The 15-day condonable period under Section 61(2) proviso cannot be extended even if it ends on a holiday.

b. This period is not a "prescribed period" under Rule 3 of NCLAT Rules.

c. The benefit of Section 4 of the Limitation Act or Rule 3 of NCLAT Rules cannot be applied to this period.

2. On the 30-day Limitation Period

The Tribunal determined that:

a. Days when the Tribunal is closed should be excluded from the 30-day calculation.

b. Rule 3 of NCLAT Rules explicitly provides for exclusion of days when the office is closed.

c. This interpretation aligns with Section 4 of the Limitation Act.

Disposition of Appeals

Conclusion

The 15-day condonable period under Section 61(2) is absolute and cannot be extended, even if the last day falls on a holiday. Tribunal closure days are excluded from the initial 30-day limitation period but not from the additional condonable period. The IBC’s limitation framework overrides the Limitation Act, meaning procedural relaxations do not apply to condonable periods.  

This judgment reinforces the importance of strict compliance with appeal deadlines under IBC and has key implications for practitioners. Appeals must be filed within the strict 30-day + 15-day window without reliance on procedural relaxations. Tribunal closure days may be excluded when calculating the initial 30-day limitation period, but not for the condonable extension. Delay condonation applications must be supported by strong justifications and filed within permissible timelines.  

Please find attached a copy of the Judgement.

This update has been contributed by Udit Mendiratta (Partner) and Apeksha Singh (Associate).

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