Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2021 (11) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 787 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - time limitation - HELD THAT:- On Perusal of Part- IV of the Application which contains the Particulars of Operational Debt the Date of Default is mentioned as 21.04.2016 the date on which the last demand was raised by the Operational Creditor however, the present application has been filed on 10.10.2019 which is way beyond the period of three years hence, it can be ascertained that the present application has been filed beyond the period of three years from the date of default. The Hon'ble Supreme Court in BABULAL VARDHARJI GURJAR VERSUS VEER GURJAR ALUMINIUM INDUSTRIES PVT. LTD. & ANR. [2020 (8) TMI 345 - SUPREME COURT] has held that the right to apply under the code accrues on the date when the default occurs and that the date of commencement of the code is not the trigger point for the limitation and if the default had occurred over three years prior to the date of filing of the application, the application would be time-barred. It is clear that the Present application filed under section 9 of IBC, 2016 fails the test of limitation - since the debt is time-barred, there are no option but to reject the prayer of the Operational Creditor to initiate proceedings under Section 9 of IBC, 2016. Application dismissed.
|