2020 (9) TMI 54 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - time limitation - whether the Application under Section 7 of the I&B Code, 2016 filed by the Respondent Bank was within the period of limitation? - HELD THAT:- The determining factor is the three years period from date of default/NPA. This Appellate Tribunal has also observed in RAJENDRA KUMAR TEKRIWAL (EX- DIRECTOR: PITHAMPUR POLY PRODUCTS LIMITED) VERSUS BANK OF BARODA (BEFORE MERGER WITH RESPONDENT BANK WAS KNOWN AS “DENA BANK”) [2020 (8) TMI 498 - NATIONAL COMPANY LAW APPEALLATE TRIBUNAL, NEW DELHI] that the period of three years from the date of the Account of Corporate Debtor is classified as NPA then it becomes impermissible to proceed with Section 7 Application as observed in the para 11 of the Judgment - All these leads to reiterate that the provisions of The Limitation Act, 1963 vide Section 238A of the I&B Code, 2016 will be applicable to all NPA cases provided they meet the criteria of Article 137 of the Schedule to The Limitation Act, 1963. The extension for the period of Limitation can only be done by way of application of Section 5 of The Limitation Act, 1963, if any case for the condonation of delay is made out.

The impugned order dated 27.08.2019 passed by the Adjudicating Authority (NCLT, Hyderabad Bench, Hyderabad) is set aside - appeal allowed.