2024 (1) TMI 900 - SCH - Insolvency and Bankruptcy

Time Limitation - Date of default as stated in the petition under Section 7 of the Insolvency and Bankruptcy Code 2016 - HELD THAT - Issue notice, returnable on 22 January 2024. List the Civil Appeal on 22 January 2024.

Summary

Issues involved:
The issues involved in the judgment are delay condonation, limitation period under Section 7 of the Insolvency and Bankruptcy Code 2016, amendment of the petition, prejudice to the petitioner, service of counter affidavit, and stay of proceedings before the National Company Law Tribunal.

Delay Condonation:
The Court condoned the delay in the case.

Limitation Period under Section 7:
The senior counsel for the petitioner referred to specific dates related to the limitation issue:
- Date of default as 30 April 2014 as per the petition under Section 7.
- Lodgement of the petition under Section 7 on 1 February 2022.
- Application for amendment of the petition under Section 7 to change the default date to 10 January 2019 on 12 April 2023.
- Order of the NCLT allowing the amendment on 8 August 2023.

Amendment of the Petition and Prejudice to the Petitioner:
It was argued that the amendment changing the default date has caused grave prejudice to the petitioner. The original petition was already barred based on the default date of 30 April 2014, and even with the amended date, the petition was filed beyond the three-year period.

Service of Counter Affidavit:
The counsel for the respondent assured that a copy of the counter affidavit would be served on the petitioner's counsel by 20 January 2024.

Stay of Proceedings:
A stay was ordered on further proceedings before the National Company Law Tribunal until 22 January 2024, in light of the impugned order dated 2 November 2023.

Civil Appeal Listing:
The Civil Appeal was scheduled to be listed on 22 January 2024.