Sections 422 and 423 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 422 tells the NCLT and the NCLAT to dispose of every application, petition and appeal as expeditiously as possible, with an endeavour to finish within three months. Section 423 gives the last appeal in the chain: any person aggrieved by an order of the NCLAT may appeal to the Supreme Court within 60 days, on a question of law.
Under section 422, every application, petition or appeal should be disposed of as expeditiously as possible, with every endeavour to finish within three months from presentation or filing. If not, the Tribunal records its reasons, and the President or Chairperson may extend the period by not more than 90 days. Under section 423, an appeal from an NCLAT order lies to the Supreme Court within 60 days from receipt of the order, only on a question of law, with a further 60 days allowed for sufficient cause.
Sections 422 and 423 at a glance
| Provision | What it says | Time |
|---|---|---|
| 422(1) | Dispose of applications, petitions and appeals as expeditiously as possible; endeavour to do so within three months | From presentation (Tribunal) or filing (Appellate Tribunal) |
| 422(2) | If not disposed within that period, record reasons; President or Chairperson may extend by not more than 90 days | Extension up to 90 days |
| 423 | Appeal to the Supreme Court against an NCLAT order on a question of law | 60 days from receipt of the order |
| 423 proviso | Supreme Court may allow a further period not exceeding 60 days for sufficient cause | Up to 60 more days |
Section 422(1): the three-month target
Section 422(1) covers "every application or petition presented before the Tribunal and every appeal filed before the Appellate Tribunal". It says each shall be dealt with and disposed of "as expeditiously as possible" and that "every endeavour shall be made" to dispose of it within three months from the date of presentation before the Tribunal or filing of the appeal before the Appellate Tribunal.
The wording is an endeavour, not a hard deadline. The section does not say an order becomes invalid, or that a case lapses, if the three months pass. Its value to a litigant is as a yardstick: if a matter drifts, the Tribunal has to justify it in writing.
If you are filing an application and want it prepared so it can be heard without avoidable delay, our legal dispute resolution team can help with the papers and the hearing.
Section 422(2): reasons and extension
When a matter is not disposed of within the three months, sub-section (2) applies in two steps.
- The Tribunal or the Appellate Tribunal shall record the reasons for not disposing of it within the period.
- The President (for the Tribunal) or the Chairperson (for the Appellate Tribunal) may, after taking into account the reasons so recorded, extend the period by such period not exceeding ninety days as he considers necessary.
So, reading the text, the benchmark is three months plus an extension of up to ninety days. The section does not say what happens after that, and it does not stop a matter being heard later. In practice, complex matters often run longer, so plan for that in the client's timeline.
Example. A company files an application on 1 January. By 1 April it is undisposed. The Bench records why, for instance that pleadings are still being completed. The President may extend the period by up to 90 days, which takes the section 422 period to about the end of June.
Section 423: appeal to the Supreme Court
The text of section 423: "Any person aggrieved by any order of the Appellate Tribunal may file an appeal to the Supreme Court within sixty days from the date of receipt of the order of the Appellate Tribunal to him on any question of law arising out of such order."
Four points follow from the text.
- Who: any person aggrieved by an order of the Appellate Tribunal. The route runs from the NCLAT, not directly from the NCLT. For the first appeal, see section 421: appeal to the NCLAT.
- Ground: only a question of law arising out of the order. A disagreement with the NCLAT's view of the facts does not qualify. Frame the question as a legal one, such as the correct reading of a provision or whether a legal test was applied.
- Time: 60 days from the date of receipt of the NCLAT order by the appellant.
- Condonation: under the proviso, the Supreme Court may allow the appeal to be filed within a further period not exceeding 60 days if satisfied that the appellant was prevented by sufficient cause. So the outer limit under the text is 120 days from receipt.
| Stage | Time limit | Runs from | Extra time |
|---|---|---|---|
| NCLT to NCLAT (s.421) | 45 days | Copy of order made available | Up to 45 days |
| NCLAT to Supreme Court (s.423) | 60 days | Receipt of the NCLAT order | Up to 60 days |
Section 423 and the Insolvency and Bankruptcy Code
Section 423 applies to orders of the Appellate Tribunal under the Companies Act. For orders made under the Insolvency and Bankruptcy Code, 2016, the Code carries its own appeal provisions. See appeals to NCLAT and Supreme Court under the IBC before you rely on the periods above for an insolvency order.
Limitation Act and these sections
Section 433 applies the Limitation Act, 1963 to proceedings and appeals before the Tribunal and the Appellate Tribunal, as far as may be. It does not govern section 423, which is an appeal to the Supreme Court and has its own 60-day period and proviso. See sections 432 and 433.
Proposed change (Corporate Laws (Amendment) Bill, 2026)
We found no clause in the Corporate Laws (Amendment) Bill, 2026 that amends section 422 or section 423. The Bill was introduced in Lok Sabha on 23 March 2026 and sent to a Joint Parliamentary Committee, whose report came on 3 August 2026. It is pending and not law as on 30 September 2026.
Practical checklist
- On receipt of an NCLAT order, record the date of receipt and calculate day 60.
- Identify the question of law. If there is none, a section 423 appeal is not available.
- If a hearing is stuck, ask whether the three months have run and whether reasons have been recorded.
- For delay, keep dated proof of the cause. The Supreme Court may allow up to 60 more days only for sufficient cause.
Need help with a tribunal appeal?
Choosing whether to go to the Supreme Court, and framing the legal question correctly, needs care with the record and the dates. Our legal dispute resolution team can assess the NCLAT order with you and prepare the next step.
Key takeaways
- Section 422: endeavour to dispose of matters within three months.
- If not, reasons are recorded and the President or Chairperson may extend by up to 90 days.
- Section 423: appeal from the NCLAT to the Supreme Court, on a question of law only.
- Time: 60 days from receipt, plus up to 60 days for sufficient cause.
- Orders under the IBC follow the Code's own appeal provisions.
Read next
- Appeal to the NCLAT: section 421
- Procedure before the Tribunal: section 424
- Appeal against an NCLT order: NCLAT and Supreme Court
- Appeals to NCLAT and Supreme Court under the IBC
Disclaimer: Based on the Companies Act, 2013 as amended up to 1 April 2021 (official consolidated text), read with later developments noted in the article; proposals in the Corporate Laws (Amendment) Bill, 2026 are pending and not law as on 30 September 2026. Verify current notifications and rules before acting.