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2021 (2) TMI 1173 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Time Limitation - right to file application was surviving on the date of its filing before the Adjudicating Authority or not? - HELD THAT:- It is abundantly clear that the financial debt which the Corporate Debtor owed to the Assignor- State Bank of India was declared NPA prior to 16th January, 2006 i.e. the date when the financial debt came to be assigned to Appellant- ‘Kotak Mahindra Bank Limited’. It also emerges from the record that the Assignor- State Bank of India had filed recovery proceedings before DRT, Jabalpur somewhere in year 2000 and the final order came to be passed on 23rd October, 2002 culminating in issuance of Recovery Certificate which is pending execution before the Recovery Officer. Thus, computed from the date of classification of account of Corporate Debtor as NPA or even from the date of issuance of Recovery Certificate, filing of application under Section 7 on 29th October, 2018 is beyond three years. It is by now settled that Article 137 of the Limitation Act, 1963 governs filing of an application under Section 7 of the ‘I&B Code’. The default having occurred over three years prior to filing of application, prayer of Appellant to trigger CIRP against the Corporate Debtor has rightly been declined - Appeal dismissed.
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