Supreme Court Dismisses Appeals; Directs Appellants to NCLAT for Factual Debate, Grants Extension for Appeal Filing.

The SC corrected an error in recording the order for Civil Appeal No.4095/2023, acknowledging it was mistakenly recorded in a different case. In Civil Appeals No.4095/2023 and No.4096/2023, the SC dismissed the appeals, stating that the factual debate should occur before the NCLAT rather than directly entertaining special leave petitions against NCLT orders. The appellants were granted the liberty to appeal before the NCLAT within the stipulated time, with the period from filing the special leave petitions excluded for filing the appeals.

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Issues: Correction of Order in Civil Appeal, Tagging of Special Leave Petitions with Different Project, Correct Approach for Entertaining Special Leave Petitions

The Supreme Court, in Civil Appeal No.4095/2023, noted an error in recording the order in a previous appeal and corrected the same, acknowledging that the order was mistakenly recorded in a different appeal where time was sought by the counsel for the resolution applicant (R-2) to obtain instructions.

Regarding Civil Appeal No.4096/2023 & Civil Appeal No.4095/2023, the Court observed that the basis for tagging the special leave petitions with a different project did not apply to these cases. It emphasized that the factual debate should occur before the NCLAT on the application of the law, and only then would it be appropriate for the Court to consider the NCLAT's order as a statutory remedy. The Court stated that directly entertaining the special leave petitions against the NCLT's orders would not be the correct approach. Consequently, the appeals were dismissed with the appellants being granted the liberty to appeal before the NCLAT within the stipulated time. The Court also excluded the period from the filing of the special leave petitions until the present date for the purposes of filing the appeals.

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