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Insolvency and Bankruptcy Code, 2016 | Chapter VI

Section 202: Appeal to National Company Law Appellate Tribunal (NCLAT)

Section 202 provides an appeal route for an insolvency professional agency aggrieved by an order of the Insolvency and Bankruptcy Board of India (IBBI) made under Section 201 concerning the agency's registration.

Key point: This provision addresses appeals by insolvency professional agencies against Section 201 orders. It is not the general appeal provision for every insolvency proceeding or for every order affecting an individual insolvency professional.

Text of Section 202 of the IBC

202. Appeal to National Company Law Appellate Tribunal. Any insolvency professional agency which is aggrieved by the order of the Board made under section 201 may prefer an appeal to the National Company Law Appellate Tribunal in such form, within such period, and in such manner, as may be specified by regulations.

Meaning and scope of Section 202

The provision establishes a statutory right of appeal for an insolvency professional agency (IPA), a body registered with the IBBI to enrol and regulate insolvency professionals within the framework of the Code. The Board means the Insolvency and Bankruptcy Board of India, while the National Company Law Appellate Tribunal (NCLAT) is the appellate forum identified in this section.

The appeal must concern an order of the Board under Section 201. That section governs applications for registration, grant and renewal of certificates, and suspension or cancellation of registration of an insolvency professional agency. Section 202 therefore provides an avenue to challenge an adverse registration-related decision within that statutory framework.

Who can appeal and against which orders?

  • Eligible appellant: An insolvency professional agency aggrieved by the Board's order under Section 201.
  • Relevant orders: For example, rejection of an application for registration or an order suspending or cancelling an agency's registration under Section 201.
  • Appellate forum: The National Company Law Appellate Tribunal.
  • Procedure: The appeal must comply with the applicable statutory provisions, regulations and tribunal procedural requirements, including the applicable filing period and prescribed form.

How to approach an appeal under Section 202

  1. Identify the impugned order. Obtain the complete IBBI order and confirm that it was issued under Section 201.
  2. Check the applicable filing rules and deadline. Section 202 itself does not specify a numerical appeal period; it refers to the period and manner prescribed by regulations. Verify the current applicable rules and any relevant tribunal directions before filing.
  3. Prepare the grounds of challenge. Address the findings, statutory requirements, supporting evidence and any alleged procedural unfairness.
  4. File before NCLAT. Follow the currently applicable filing, service, fee and document requirements, including any e-filing instructions issued by the tribunal.
  5. Consider interim relief where necessary. Where appropriate, seek suitable directions from the appellate forum; filing an appeal should not be assumed to automatically stay the challenged order.

Procedural safeguards under Section 201

Section 201 provides important protections at the registration stage. An application for registration must be acknowledged within seven days of receipt. An application cannot be rejected without giving the applicant an opportunity of being heard, and the rejection order must be communicated within fifteen days. For suspension or cancellation of registration, the agency must be given a reasonable opportunity of being heard; the relevant order must be passed by a whole-time member of the Board. These safeguards may be relevant when examining an order challenged under Section 202.

Section 202 compared with other IBC appeals

Section 202 is a specialised appeal provision linked to registration of insolvency professional agencies. Appeals from orders of the National Company Law Tribunal in corporate insolvency matters are addressed separately under Section 61 of the Code, subject to its own conditions and time limits. The correct remedy depends on the authority that passed the order, the subject matter and the applicable statutory provision.

Frequently asked questions

Does Section 202 apply to every IBBI order?

No. Its wording is confined to an insolvency professional agency aggrieved by an order of the Board made under Section 201.

Does Section 202 itself provide a 30-day filing deadline?

No fixed number of days appears in the text of Section 202. The provision refers to the period prescribed by regulations. The applicable filing framework should be checked before taking action.

Can an individual insolvency professional rely on Section 202?

Section 202 expressly refers to an insolvency professional agency. The appropriate remedy for an individual professional depends on the nature of the order and the governing provisions.

Related provisions and official sources

Read the complete Insolvency and Bankruptcy Code, 2016 and the related provisions on registration under Section 201, registration principles under Section 200 and mandatory registration under Section 199.

For current legislation, regulatory materials and filing instructions, consult India Code, IBBI and NCLAT.

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Legal information only. Procedures, regulations and filing requirements may change; verify the current applicable provisions and official tribunal directions before acting.