Supreme Court rejects GST department's late appeal, sets IBC appeal deadline rule
The Supreme Court held that the 60-day limit to appeal an NCLAT insolvency order runs from pronouncement, and dismissed the Central GST department's appeal on Samyu Glass as time-barred.
Key points
- The Supreme Court on 14 October 2026 dismissed the Central GST department's appeal against Samyu Glass's resolution plan as time-barred.
- The court held the 45-day limit, extendable by 15 days, runs from the NCLAT's pronouncement, excluding only time to prepare a copy.
- Anyone appealing an NCLAT insolvency order must file within 60 days; waiting for a certified copy does not stop the clock.
The Supreme Court on 14 October 2026 dismissed an appeal by the Central GST department as filed too late, holding that the time limit for appealing an insolvency order to the court starts when the National Company Law Appellate Tribunal (NCLAT) pronounces it, not when a party collects a certified copy. The ruling leaves in place a resolution plan for Samyu Glass Private Limited that allotted Rs 1,34,657 towards the department's excise dues.
What Happened
According to the judgment, Samyu Glass, a glass container maker, faced several excise recovery proceedings between 2013 and 2017 and stopped manufacturing around late 2016. Andhra Bank, now Union Bank of India, took the company into insolvency. In November 2019, the tax department filed a claim of Rs 22,60,32,948.
On 13 August 2021, the National Company Law Tribunal in Hyderabad approved a resolution plan under which Rs 1,34,657 was set aside for the excise arrears. The department challenged the plan, but the NCLAT in Chennai upheld it on 2 August 2023. The department applied for a certified copy on 6 September 2023, received it on 11 October 2023, and filed its appeal on 21 November 2023.
The court held that under Section 62 of the Insolvency and Bankruptcy Code, an appeal must be filed within 45 days, with a further 15 days allowed for sufficient cause, an outer limit of 60 days. It held that the clock starts on pronouncement, and only the time the registry takes to prepare a copy after a party applies for it is excluded. Counting 35 days before the department applied and 41 days after it received the copy, the court found 76 days had been used in all, 16 days past the outer limit, and said it had no power to condone the delay.
What It Means
The ruling sets a firm deadline for anyone appealing an NCLAT insolvency order to the Supreme Court, including creditors, homebuyers, tax authorities and promoters. Waiting to collect a certified copy does not stop the clock, the court held, and an appeal filed after 60 days, excluding only the time taken to prepare the copy, cannot be heard.
Source: Supreme Court order
Sources & Citations
- Supreme Court order — Supreme Court of India