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2021 (5) TMI 412 - Tri - Insolvency and BankruptcyMaintainability of application - time limitation - case of respondent is that the claim of the Applicant from November 2013 is categorically barred by limitation since there was no communication from the Applicant as per the own admission after 21.09.2016 and the CIRP in respect of the Corporate Debtor was initiated on 05.05.2020 - HELD THAT:- The Applicant has not placed on record any document after 21.09.2016, in order to show that the claim of the Applicant falls within the period of Limitation. It is seen that the CIRP in relation to the Corporate Debtor was initiated on 05.05.2020 and the claim of the Applicant relates to the year 2014. By taking into consideration the provisions of Section 238A of IBC, 2016 is hopelessly barred by limitation as rightly pointed out by Learned Counsel for Respondent and also Learned Counsel for Applicant has not placed on record any document to show that he has obtained any acknowledgment after the year 2016. The Applicant, in the present case, would not be in a position to approach the Civil Court by way of a suit for recovery of money, as the claim amount admittedly falls beyond the prescribed period of limitation and thereby by filing the present Application under Section 60(5) of IBC, 2016, cannot seek to enforce a claim, which is time barred as per the provisions of the Limitation Act, 1963 on the date of initiation of the CIRP itself. Hence, also on the said count, the Application as filed by the Applicant is liable to be dismissed. It is also relevant to refer to the decision of the Hon'ble Supreme Court of India, in the matter of B.K. EDUCATIONAL SERVICES PRIVATE LIMITED VERSUS PARAG GUPTA AND ASSOCIATES [2018 (10) TMI 777 - SUPREME COURT] wherein it has held that Limitation Act is applicable since the inception of the Code while posing itself with a query as to whether the Limitation Act, 1963 will apply to Applications that are made under Section 7 and or Section 9 of the Code on and from its commencement on 01.12.2016 to 06.06.2018 (date of amendment of insertion of Section 238-A coming into effect). It was clearly held that the Code could not have been to give a new lease of life to debts which are time barred and have thereby gone to give a finding by taking into consideration the above noted Report that the Limitation Act is applicable from the inception of the Code. The Respondent has rightly rejected the claim made by the Applicant in this regard and as such we are of the view that the rejection order passed by the Respondent does not warrant any interference - Application dismissed.
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