NCLAT Issues Fresh Directions For Computation Of Limitation In Filing Of Appeals, Withdraws Earlier Directions

The National Company Law Appellate Tribunal (“NCLAT”) vide an Order dated 24.12.2022 has issued fresh directions for computation of limitation for filing of appeals before NCLAT. The period of limitation shall be computed from the date of e-filing and hard copy has to be filed within 7 days of e-filing. However, the Competent Authority is at liberty to extend the period of filing hard copy in case of any unforeseen exigency. If hard copy is filed after 7 days, the appeal will be placed before the Tribunal for appropriate order. Further, the requirement of filing Appeals by electronic mode shall continue along with mandatory filing of the Appeals as per Rule 22 of the NCLAT Rules, 2016. The directions are effective from 24.12.2022 onwards. NCLAT has also recalled its previous circular dated 21.10.2022 bearing F.No.10/37/2018-NCLAT regarding computation of limitation. Brief Background The Rule 22 of the NCLAT Rules, 2016 provides for “Presentation of appeal”, which is to be made at the filing counter of the NCLAT. As per Rule 103 of the NCLAT Rules, 2016, NCLAT has also permitted filing of the Appeal or proceedings through electronic mode (e-filing). Standard Operating Procedure (SOP) dated 03.01.2021 regarding e-filing provides: “It may be noted that it is mandatory that Ld. Advocates/ Authorised Representatives/ Parties-in-Person shall file the Appeal/Interlocutory Application/Reply/ Rejoinder etc. in hard copy also as per the procedure prescribed in NCLAT Rules, 2016 along with the e-filing receipt. The online filing & hard copies must match with proper pagination. The Court Fee shall be paid through Bharat Kosh (https://bharatkosh.gov.in ) and the payment receipt should be attached.” However, the NCLAT SOPs and directions do not contain any direction with regard to computation of limitation, whether limitation is to be computed from the date of e-filing of the Appeals or from the date when Appeals are presented before the NCLAT as per Rule 22. On 21.10.2022 the Competent Authority issued directions that the period of limitation shall be computed from the date of presentation of Appeal as per Rule 22 of the NCLAT Rules, 2016. Later it was observed that Appeals are e-filed from different parts of the country where the appellant is often located in far-away places and time is taken to file physical copy. Hence, on 24.12.2022 the NCLAT has withdrawn the earlier order dated 21.10.2022 and issued fresh guidelines for computation of limitation. Directions For Computation Of Limitation The Limitation shall be computed from the date of e-filing. The hard copy has to be filed within 7 days of e-filing. However, the Competent Authority is at liberty to notify to extend the period of filing hard copy in case of any unforeseen exigency. In a case where hard copy is filed after 7 days, the appeal will be placed before the Tribunal for appropriate order. Further, the requirement of filing Appeals by electronic mode shall continue along with mandatory filing of the Appeals as per Rule 22 of the NCLAT Rules, 2016. The NCLAT Order dated 24.12.2022 supersedes Order dated 21.10.2022 and has come into force with immediate effect. F.No. 23/4/2022-Estt./NCLAT Click Here To Read/Download Direction

NCLAT Issues Fresh Directions For Computation Of Limitation In Filing Of Appeals, Withdraws Earlier Directions

Pallavi Mishra

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