Appealability of adjournment orders under insolvency law: procedural adjournments not appealable; appeal dismissed.

Whether an adjournment order is appealable under the Insolvency and Bankruptcy Code was examined: the legal principle applied is that appeals lie only against orders affecting substantive rights within the Part II appeal scope, and a mere adjournment fixing a future date for filing does not determine rights on the merits and thus falls outside that appeal scope; outcome: such adjournment orders are not appealable and the appeal was dismissed. The Tribunal nonetheless urged the Adjudicating Authority to decide the pending matter on merits promptly to protect creditor value.

---

---

Issues: Whether an order of adjournment/fixation of date passed by the Adjudicating Authority (NCLT) is appealable under Section 61 of the Insolvency and Bankruptcy Code, 2016.

Analysis: Section 61 permits appeals against orders passed under Part II (Chapter VI) of the Insolvency and Bankruptcy Code, 2016. The impugned order is a simple adjournment fixing a future date for filing of counter and does not decide rights on merits nor affect any sustainable substantive rights of the appellant. Such an order does not fall within the class of orders under Part II that are intended to be challenged under Section 61. The Tribunal noted the distinction between orders determining substantive rights and procedural adjournment orders, and observed that an adjournment which does not prejudice the party's enforceable rights is not a subject-matter of appeal under Section 61. The Tribunal, nevertheless, in the interest of justice and to promote value maximization of the corporate debtor, requested the Adjudicating Authority to consider the pending application on merits within a short timeframe.

Conclusion: The adjournment order fixing a date is not appealable under Section 61 of the Insolvency and Bankruptcy Code, 2016; the appeal is therefore dismissed.

---