IBC Section 64: Expeditious disposal of applications

Section 64 of Insolvency and Bankruptcy Code, 2016: Expeditious disposal of applications

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Where an application is not disposed of or an order is not passed within the period specified in this Code, the National Company Law Tribunal or the National Company Law Appellate Tribunal, as the case may be, shall record the reasons for not doing so within the period so specified; and the President of the National Company Law Tribunal or the Chairperson of the National Company Law Appellate Tribunal, as the case may be, may, after taking into account the reasons so recorded, extend the period specified in the Act but not exceeding ten days.

(2) No injunction shall be granted by any court, tribunal or authority in respect of any action taken, or to be taken, in pursuance of any power conferred on the National Company Law Tribunal or the National Company Law Appellate Tribunal under this Code.

Legal Commentary & Landmark Judgments: Section 64

Section 64 imposes statutory commands upon the NCLT and NCLAT for the expeditious disposal of applications and appeals, requiring written recording of reasons whenever statutory deadlines are exceeded.

Expeditious Disposal Mandate: Where an application is not disposed of or an order is not passed within the period specified in the Code, the NCLT or NCLAT shall record the reasons for the delay in writing.
Extension by President / Chairperson: The President of NCLT or Chairperson of NCLAT may, after taking into account the reasons recorded, extend the period by such period not exceeding ten days.
No Vested Right to Dilatory Tactics: Strictly bars parties from exploiting procedural adjournments to delay statutory insolvency timelines.

Key Landmark Precedents:

Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta (2020) 8 SCC 531: The Supreme Court struck down the word 'mandatorily' in the 330-day timeline under Section 12, but emphasized that Section 64 commands tribunals to decide insolvency applications with utmost dispatch to prevent value destruction.
Innoventive Industries Ltd. v. ICICI Bank (2018) 1 SCC 407: Affirmed that speed is the lifeblood of the IBC, and Section 64 enforces institutional accountability upon adjudicating benches.

Courtroom Practice & Strategic Litigation Guidance:

If an admission application under Section 7 or 9 remains undecided for months beyond the 14-day statutory period, move an urgent listing application citing Section 64 r/w Section 7(5), urging the bench to record reasons and pronounce the admission order without further adjournment.