Home Case Index All Cases Companies Law Companies Law + AT Companies Law - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 1875 - AT - Companies LawMaintainability of Application under section 7 of the Insolvency and Bankruptcy Code, 2016 - the Bank has neither acted in terms of circular and guidelines issued by the Reserve Bank of India nor in terms of the Reserve Bank of India Act - Held that:- Such ground cannot be accepted to reject the application preferred by the ‘Financial Creditor’ under Section 7 of the ‘I&B Code’, there being admitted default. Rejection of application also on the ground that amount due is barred by ‘limitation’ - Held that:- Such submission cannot be accepted in view of the fact that there is a continuous cause of action. Even if it is accepted that Limitation Act is applicable, in such case Article 137 of Part II of the Limitation Act will be applicable whereunder three years’ period from the date of right to apply accrued will be applicable - In the present case, the right to apply under Section 7 accrued to ‘Punjab National Bank’ on 1st December, 2016, when ‘I&B Code’ came into force. Before the same, it had no right to apply under Section 7 of the ‘I&B Code’. Therefore, even if the Limitation Act is made applicable, the application being not barred by limitation, interference is not called for. There is no merit in the appeal - appeal dismissed.
|