My lawyer recorded consent to an NCLT order that I say I never authorised. Can I appeal it?

Answered by Advocate Sharan Jain··Corporate & Commercial Law

Legal Shorts · 53 words

A genuine consent order is subject to the section 421(2) appeal bar. If you say the consent was never authorised, preserve the settlement drafts, instructions and order and seek immediate advice on the correct challenge. Disputing authority is different from regretting agreed terms, and the order should not be treated as automatically suspended.

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Do not assume you can file an ordinary appeal simply because you now disagree with the settlement. Section 421(2) bars a Companies Act appeal from an NCLT order made with the parties' consent. If your position is that consent was never authorised or was falsely recorded, preserve the evidence and obtain immediate advice on the proper challenge to that alleged absence of consent.

What is the difference between regret and no consent?

Regretting an authorised compromise is different from denying that a compromise was authorised at all. Identify your case precisely. Did you approve the terms, give limited authority, reject a draft, or never receive it? The answer should come from the record rather than a broad statement that the lawyer acted wrongly.

Obtain the signed consent terms, order, hearing record where available, correspondence, instructions and authority documents. For a company, identify the board or authorised signatory decision. For an individual, preserve the actual communications about settlement and any limits imposed.

What should I do if the order misrecords the hearing?

Act promptly and take the order and supporting record to an independent adviser if necessary. Ask which application or appellate step is appropriate for the specific defect. The section 421 consent bar is important, but it does not itself answer every allegation that genuine consent was absent.

Do not present a contested consent issue as a simple typographical correction. A name typed incorrectly is different from a substantive dispute about authority to compromise. The legal basis and evidence must match the relief requested.

Should I accuse the lawyer in the first letter?

State the facts and request the relevant records before making allegations you cannot support. Identify the instruction you gave, the term you did not authorise and the document showing the difference. Keep communications professional and preserve privilege issues for advice.

If there is a professional-conduct complaint, it is separate from correcting or setting aside the effect of the order. Do not assume that complaining to a regulator automatically suspends the settlement or protects a court deadline. The litigation remedy needs attention immediately.

Can I stop complying with the consent order?

Do not assume a dispute about authority makes the order disappear. Obtain advice on urgent protection and the consequences of non-compliance. If a payment or transfer deadline is imminent, put it at the front of the file and ask what relief must be sought before it passes.

Likewise, avoid accepting benefits under the order without considering how that conduct may affect your position. The adviser needs to know what has already been paid, received, transferred or implemented. A challenge prepared on the assumption that nothing happened can be undermined by an undisclosed transaction.

What should the chronology contain?

List each draft, instruction, approval or rejection, the hearing date, order date, discovery of the disputed term and steps taken afterwards. Attach the original messages rather than summaries alone. If instructions were oral, record your recollection accurately and identify any person or contemporaneous record that may corroborate it.

The immediate decision is procedural and evidentiary: what exactly was unauthorised, how can that be shown, and which forum can grant the needed relief? The answer is not supplied by changing the appeal heading to say consent disputed. A focused record gives the adviser a basis to assess a genuine challenge while avoiding an appeal barred because the order was in fact consensual.

This article is for general informational purposes only and does not constitute legal advice. Consult a qualified advocate for advice on your specific situation.

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Sources

The law this answer relies on, so you can read it yourself.

  1. 1.Companies Act, 2013, official Gazette text: sections 420-421. Read the source
  2. 2.National Company Law Tribunal Rules, 2016: Tribunal procedural framework. Read the source

The short answer's sources were checked on 29 September 2026. Statutes and judgments can change, so check the current position before you act on anything here.

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Answered by

Advocate Sharan Jain

Advocate based in Bangalore, practising before the Karnataka High Court and District, Sessions, Consumer and Family courts. Answers public legal questions to make Indian law more accessible.

This answer is general information on Indian law as at October 1, 2026, published for public education. It is not legal advice, it does not take account of your facts, and reading it does not create an advocate-client relationship. Law changes and every case turns on its own circumstances. Please consult a qualified advocate about your own matter.

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