NCLT Mumbai imposes ₹5,000 cost, allows delayed appeal by liquidator under Rule 63
Court / Authority
NCLT & NCLAT
Update / Judgement Date
28 Jun 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
2 min read
View Count
Background
The National Company Law Tribunal, Mumbai Single Bench, has condoned a 60-day delay in filing an appeal by the liquidator of Pai Khot Infra Pvt. Ltd., while imposing costs of ₹5,000 and granting a final opportunity to cure procedural defects.Tribunal notes inaction but adopts conditional leniency. During the hearing held on 28 January 2026, counsel for the appellant submitted that the underlying application was filed merely to place a progress report on record, and that the delay in filing the appeal occurred due to a change of advocate. A request was made for a lenient view. However, the Tribunal recorded that although registry objections had been duly notified after the main application was filed on 1 August 2025, there was total inaction on the part of the appellant in removing the defects. The Bench noted that no cogent or satisfactory explanation was placed on record to justify the delay of 60 days in invoking the appellate remedy under Rule 63.
Taking note of the appellant’s conduct, the Tribunal observed that condonation of delay could not be granted as a matter of course. Nevertheless, in order to balance procedural discipline with substantive justice, the Bench decided to grant conditional relief.
Cost imposed; strict compliance directed
The Tribunal allowed the appeal subject to payment of ₹5,000 as costs, directing that the amount be deposited in the Prime Minister’s National Relief Fund. Importantly, the Bench ordered that the cost must be paid from the liquidator’s own pocket, and proof of payment must be filed before the Registry. Upon verification of payment, the Registry has been directed to permit the appellant to cure all defects. The Tribunal granted seven days from the date of uploading of the order to file a defect-free appeal on the DMS portal, clarifying that this would be treated as a last opportunity.
The Bench further cautioned that non-compliance with any condition of the order would automatically nullify the relief, resulting in dismissal of the appeal without further reference.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about NCLT & NCLAT
- What are the NCLT and NCLAT?
- The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) were constituted on 1 June 2016 under the Companies Act, 2013. The NCLT sits in benches across India, and the NCLAT hears appeals from it, with its principal bench in New Delhi and a bench in Chennai.
- What cases does the NCLT hear?
- The NCLT is the Adjudicating Authority for corporate insolvency under the IBC. It also hears company law matters, including oppression and mismanagement petitions, schemes of merger and demerger, reduction of capital, and class action suits.
- What is the time limit to appeal an NCLT order to the NCLAT?
- Under the Companies Act, the appeal is due within 45 days, extendable by up to 45 days. Under the IBC, it is due within 30 days, extendable by up to 15 days. These outer limits are strictly applied.
- How can I check NCLT case status or orders?
- Case status, cause lists and orders are available on the NCLT website (nclt.gov.in) and the NCLAT website (nclat.nic.in), searchable by case number, party name or bench.
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