Section 198 Cannot Be Invoked To Extend IBC Appeal Limitation: NCLAT Rejects IBBI's Delayed Appeal
Pranav B Prem
The National Company Law Appellate Tribunal (NCLAT), New Delhi, dismissed an appeal filed by the Insolvency and Bankruptcy Board of India (IBBI) challenging the approval of a resolution plan for Township Developers India Ltd., holding that the delay of 103 days in filing the appeal could not be condoned. The Bench comprising Justice Ashok Bhushan and Technical Member Indevar Pandey held that Section 198 of the Insolvency and Bankruptcy Code cannot be invoked to extend the strict limitation period prescribed for filing appeals under Section 61.
The appeal arose from an order dated 13 August 2025 passed by the National Company Law Tribunal, Mumbai, approving the resolution plan in the corporate insolvency resolution process of Township Developers India Ltd. The IBBI filed the appeal on 24 December 2025 along with an application seeking condonation of delay of 103 days. The respondents opposed the application, contending that the delay exceeded the statutory limit and could not be condoned.
Under Section 61(2) of the Insolvency and Bankruptcy Code, an appeal against an order of the Adjudicating Authority must be filed within 30 days, with a further extension of not more than 15 days if sufficient cause is shown. The Tribunal noted that the appeal had been filed well beyond this outer limit of 45 days.
To overcome the delay, the IBBI relied on Section 198 of the Code, which provides that where the Board does not perform any act within the time specified under the Code, the relevant Adjudicating Authority may condone the delay. The regulator argued that since Section 198 begins with a non obstante clause, it should override other provisions of the Code and allow condonation of delay even in filing appeals. It was further contended that although Section 198 refers to the Adjudicating Authority, the Appellate Tribunal could exercise similar powers.
Rejecting these submissions, the Tribunal examined the scope and object of Section 198 and held that the provision applies only to situations where the Board fails to perform a statutory function within a specified time period under the Code. The Bench held: “The said provision of Section 198 can have no relevance with regard to Section 61 of the IBC, which provides for limitation for filing an Appeal.”
The Tribunal observed that Section 198 is intended to cover delays in performance of statutory functions entrusted to the Board, such as recommending insolvency professionals within prescribed timelines, and not delays in filing appeals before the Appellate Tribunal. It noted that the appellant had not been able to identify any provision under the Code requiring the Board to file an appeal within a specified time.
Addressing the argument that the Appellate Tribunal could exercise the powers of the Adjudicating Authority, the Bench held that such power exists only for specific purposes and cannot be extended to condonation of delay beyond the statutory limitation period for appeals.
While observing that the locus of the IBBI to file an appeal cannot be denied if it is aggrieved by an order, the Tribunal held that the delay in filing the appeal was far beyond the statutorily condonable period and therefore incapable of being excused. Holding that the delay exceeded the maximum permissible period under Section 61, the Tribunal rejected the application for condonation of delay and dismissed the appeal as barred by limitation.
Cause Title: Insolvency and Bankruptcy Board of India v. Truvisory Insolvency Professionals Pvt. Ltd. & Ors.
Case Number: I.A. No. 391 of 2026 in Company Appeal (AT) (Insolvency) No. 110 of 2026
Coram: Justice Ashok Bhushan and Technical Member Indevar Pandey
