Panel wants bankruptcy appeals to be decided in three months

National Company Law Appellate Tribunal (NCLAT) should decide appeals filed before it in bankruptcy cases within three months, as timely decision-making at the appellate level is crucial for rapid resolution of distressed companies, the Lok Sabha select committee that reviewed the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 has said.

- Gireesh Chandra Prasad

The original bill had no timeline for appeals.

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The original bill had proposed a 14-day window for admission of bankruptcy proceedings in National Company Law Tribunal (NCLT), the first judicial platform where a bankruptcy case is heard, but had not proposed any timeline for cases to be decided at the appellate level.

The committee, led by Bharatiya Janata Party (BJP) member of parliament (MP) Baijayant Panda, said in its report tabled in Lok Sabha on Wednesday that the absence of prescribed statutory timelines in IBC for disposal of appeals by the appellate tribunal has resulted in delays, particularly in appeals challenging rejection of claims during the debt resolution or liquidation processes, as well as appeals against approval or rejection of resolution plans.

The report is uploaded on the Lok Sabha's website.

Noting that undue appellate delays risk undermining the efficiency and certainty of the insolvency resolution process, the committee recommended that NCLAT "shall dispose of an appeal within three months from the date of its receipt."