30-Day Delay in Filing Appeal under NCLT Rules Can Be Condoned for ‘Sufficient Cause’: NCLAT Ruling Explained

In a significant ruling that offers relief to litigants, the National Company Law Appellate Tribunal (NCLAT) has held that a delay of up to 30 days in filing an appeal under Rule 161 of the National Company Law Tribunal (NCLT) Rules, 2016 can be condoned, provided there is sufficient cause for the delay.

This judgment provides much-needed clarity on the flexibility available in procedural matters before the NCLT and NCLAT and reinforces the principle that substantial justice should not be defeated by technical delays.

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Background of the Case

The issue came up before the NCLAT in a matter where the appellant had delayed filing an appeal by 30 days beyond the statutory timeline.

According to Rule 161 of the NCLT Rules, an appeal against an order passed by the NCLT must be filed within the prescribed time. However, the appellant in this case cited certain genuine and unavoidable circumstances that led to the delay and requested that it be condoned.

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What Does Rule 161 Say?

Rule 161 of the NCLT Rules, 2016, provides the framework for filing appeals before the NCLAT. While it specifies the time limit for filing, it also opens the door for condonation of delay if sufficient cause is shown.

This means the tribunal has discretionary power to accept appeals filed beyond the deadline, depending on the reasons provided.

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Appellant’s Argument

The appellant argued that the 30-day delay in filing the appeal was not deliberate or due to negligence, but due to circumstances beyond control. They emphasized that:

• The delay was short and unintentional.
• The appeal involved substantial legal issues that deserved proper adjudication.
• Denial of hearing based on a procedural delay would result in grave injustice.

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NCLAT’s Observations and Decision

The NCLAT bench took a liberal view and held that a delay of up to 30 days can be condoned, provided the appellant demonstrates sufficient cause for not filing the appeal within the prescribed period.

“A procedural delay, if supported by a justifiable explanation, should not hinder the course of justice.”

The tribunal further highlighted that the intent of procedural law is to advance justice, not to obstruct it. Thus, the delay of 30 days was condoned, allowing the appeal to be heard on merits.

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Why This Ruling Matters

This decision by NCLAT is particularly important for companies, professionals, and litigants involved in matters before the NCLT and NCLAT. Here’s why:

✅ 1. Relief from Harsh Deadlines

This ruling affirms that genuine, explainable delays won’t automatically result in dismissal of appeals. It offers some flexibility in dealing with procedural defaults.

✅ 2. Encourages Fair Hearing

The order reinforces the judiciary’s focus on natural justice—everyone deserves a fair chance to present their case.

✅ 3. Clarity for Professionals

Legal professionals now have clear precedent to rely on while advising clients on filing deadlines and condonation options.

✅ 4. Scope for Judicial Discretion

The judgment validates that NCLAT has the authority to condone delay, making it clear that each case will be considered based on facts and reasons.

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Key Takeaway

If you miss the appeal deadline under the NCLT Rules by up to 30 days, all is not lost. You can still file your appeal if you have a sufficient and reasonable explanation for the delay.

However, it’s important to note:

🕒 Condonation is not automatic.
The delay must be backed by valid reasons and properly documented.

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Final Thoughts

In a judicial system that balances technical procedures with substantive justice, this NCLAT ruling comes as a relief. It serves as a reminder that timelines matter, but justice matters more.

Whether you’re a company secretary, corporate lawyer, or business stakeholder, this decision highlights the importance of diligence in filing appeals, while also giving room to breathe in exceptional situations.

📅 Published on: 07 July 2025
✍️ Author: CS Chhavi Goyal