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2021 (11) TMI 187 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - time limitation - HELD THAT:- Admittedly, the first default in repayment of interest took place on 30.06.2015. As per the Limitation Act, 1963, the period of limitation commenced on 30.06.2015 and ended 3 years from that date. The Insolvency Application is filed beyond the stipulated period of 3 years and, it is ex-facie apparent that the underlying purported claim is not legally enforceable and the petition is barred by limitation. Further, it is settled position of law that the limitation would have to be counted from the date of first default i.e. 30.06.2015 in the present case, unless waiver is pleaded. Pertinently, no waiver is available to the applicant bank at this belated stage, as the same has not been pleaded in the Insolvency Application. On all counts therefore, the Corporate Debtor submits and reiterates that the Insolvency Application is barred by limitation. In the Corporate Debtor's respectful submission, limitation is an issue of jurisdiction which precludes this Tribunal from granting any relief to the Applicant Bank. This also renders the Insolvency Application as not maintainable. The Bench is of the clear view that there is a Financial Debt in terms of Section 5(8) and there is default in terms of Section 3(12). The limitation aspect raised by the Corporate Debtor does not hold good. Petition allowed - moratorium declared.
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