NCLAT Chennai Judgment: IBC Appeal Limitation Triggers from Pronouncement Date, Condonation Beyond 45 Days Impermissible

The National Company Law Appellate Tribunal (NCLAT), Chennai, recently delivered a crucial ruling regarding the computation of limitation periods for filing appeals under the Insolvency and Bankruptcy Code, 2016. In the consolidated matters of Harish Shah Vs Ramakrishnan Sadasivan, the appellate authority strictly interpreted the statutory timelines, reaffirming that the clock for filing an appeal begins ticking from the exact date an order is pronounced in open court, rather than the date it is uploaded on the official judicial portal.

This comprehensive summary breaks down the tribunal's rationale, the factual matrix of the dispute, and the Supreme Court precedents that cemented the final decision to dismiss the appeals for being time-barred by a single day.

Factual Matrix of the Dispute

The legal controversy arose from the corporate insolvency resolution process of M/s. Lokaa Developer Pvt. Ltd. The adjudicating authority had previously greenlit a resolution plan submitted by the successful resolution applicant, M one Flat Owners Association. This approval was granted via an order dated 28.10.2025 in IA (IBC) / Plan / 11 (CHE) / 2024, which was connected to the main company petition CP (IB) / 124 (CHE) / 2023. The authority exercised its powers under Section 30(6) read alongside Section 60(5) of the Insolvency and Bankruptcy Code, 2016.

The appellant, an unsecured financial creditor and a homebuyer who had booked Flat No. 2001 in the "M1" project, felt aggrieved by the approved plan. Due to a double-booking issue, the appellant was excluded from receiving a physical apartment or a guaranteed financial settlement—unlike 192 other similarly situated homebuyers. Instead, the appellant's recovery was tied to uncertain future proceeds from avoidance transactions. Despite holding a 0.11% voting share and initially supporting the plan, the appellant later decided to contest the approval order.

The Timeline of the Appeal Filing

To challenge the adjudicating authority's decision, the appellant initiated two separate appeals: Company Appeal (AT) (CH) (INS) No. 54 / 2026 and Company Appeal (AT) (CH) (INS) No. 56 / 2026.