Section 181: Appeal to Debt Recovery Appellate Tribunal

Section 181 of the Insolvency and Bankruptcy Code, 2016 (IBC) provides the statutory appeal from an order of the Debt Recovery Tribunal (DRT) under the Code to the Debt Recovery Appellate Tribunal (DRAT). The provision prescribes a 30-day appeal period and permits only a further period not exceeding 15 days where sufficient cause is shown.

Text of Section 181

(1) An appeal from an order of the Debt Recovery Tribunal under this Code shall be filed within thirty days before the Debt Recovery Appellate Tribunal.

(2) The Debt Recovery Appellate Tribunal may, if it is satisfied that a person was prevented by sufficient cause from filing an appeal within thirty days, allow the appeal to be filed within a further period not exceeding fifteen days.

Meaning of Section 181

Section 181 forms part of Chapter VI of Part III of the IBC, dealing with the adjudicating authority for individuals and partnership firms. Under Section 179, the DRT is the adjudicating authority for individuals and partnership firms, subject to the provisions of the Code. Section 181 provides the appellate route from an order made by the DRT under the IBC to the DRAT.

Key limitation periods under Section 181:
Normal period for filing appeal: 30 days.
Further period that DRAT may allow for sufficient cause: not more than 15 days.

Section 181(1): Appeal Within 30 Days

Sub-section (1) requires an appeal from an order of the DRT under the IBC to be filed before the DRAT within 30 days. The provision therefore identifies both the appellate forum and the statutory period for approaching that forum.

Section 181(2): Extension for Sufficient Cause

Sub-section (2) gives the DRAT limited power to permit a delayed appeal. The appellant must satisfy the DRAT that sufficient cause prevented filing within the initial 30-day period. Even where sufficient cause is established, the further period allowed by the statutory text cannot exceed 15 days.

Important: The text of Section 181 limits the additional period that may be allowed by the DRAT to a maximum of 15 days beyond the initial 30-day period. Parties should therefore act promptly and calculate limitation carefully from the applicable starting point under the governing law and facts.

DRT and DRAT Under the IBC

The Debt Recovery Tribunal (DRT) is the adjudicating authority specified under Section 179 for the Part III matters covered by that provision. The Debt Recovery Appellate Tribunal (DRAT) is the appellate forum under Section 181 for an order of the DRT under the Code.

Further Appeal to the Supreme Court

Section 182 of the IBC provides for an appeal from an order of the DRAT to the Supreme Court on a question of law under the Code. Section 182 prescribes 45 days for such an appeal and permits the Supreme Court, on sufficient cause, to allow a further period not exceeding 15 days.

Related IBC Provisions

Section 181 should be read with Section 179 - Adjudicating Authority for individuals and partnership firms, Section 180 - Civil court not to have jurisdiction, Section 182 - Appeal to Supreme Court, and Section 183 - Expeditious disposal of applications.

Updated: 30 September 2026. The statutory provision should be read with applicable commencement notifications, amendments, rules and judicial decisions.