Chapter II - Corporate Insolvency Resolution Process
Section 32
Section 32: appeal from a resolution-plan approval order
Section 32 is a short cross-reference. An appeal from an order approving a resolution plan follows the manner and grounds in section 61(3), rather than a new unrestricted review of the plan's commercial merits.
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Need advice on Section 32?
This article is for general information. Refer to the Insolvency and Bankruptcy Code, 2016 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Any appeal from an order approving the resolution plan shall be in the manner and on the grounds laid down in sub-section (3) of section 61.
Introduction
The section concerns an approval order, including one under the amended section 31. Section 61 sets the appellate forum and filing period as well as the five plan-approval grounds. Check the full current provisions and the order date promptly before deciding whether to appeal.
Key takeaways
Limited grounds
Section 32 confines an approval-order appeal to section 61(3)'s grounds: legal contravention, material RP irregularity, operational-creditor treatment, priority of process costs, or other Board criteria.
Use the appellate route
Section 61(1) provides appeal to NCLAT; its subsection (2) governs the filing period and limited condonation window.
Identify the challenged order
Confirm that the order approves a resolution plan. If the order concerns another CIRP step, a different appeal rule or ground may apply.
Match a section 61(3) ground
Map the complaint to a specific statutory ground and retain the plan, RP record and order. A disagreement with commercial choice alone is not one of the listed grounds.
Act on the filing period
Section 61(2) sets a thirty-day filing period and allows NCLAT up to fifteen further days on sufficient cause. Calculate the applicable period from the order and obtain procedural advice immediately.
Practical checklist
Do
- Record the approval order's date and obtain its certified or official copy.
- Identify the precise section 61(3) ground and supporting record.
- Check NCLAT procedure and the statutory filing period promptly.
Avoid
- Do not assume a broad merits rehearing of the CoC's commercial decision.
- Do not rely on an open-ended extension after the statutory period.
Glossary
- NCLAT
- National Company Law Appellate Tribunal, the appellate forum identified by section 61(1).
- Material irregularity
- A qualifying irregularity in the resolution professional's exercise of powers during CIRP under section 61(3)(ii).
Frequently asked questions
Can any complaint about an approved plan be appealed under section 32?
No. Section 32 applies the grounds in section 61(3).
Where does the appeal go?
Section 61(1) names the National Company Law Appellate Tribunal.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026