2025 (7) TMI 719 - SCH - IBC

Time limitation for filing application - default had occurred on 31.01.2017 - application filed under Section 95 of the Insolvency and Bankruptcy Code 2016 was barred by limitation or not - HELD THAT - The National Company Law Appellate Tribunal (NCLAT) in the impugned order has clearly stated that the application filed under Section 95 of the Code is well within the period of limitation in view of Section 18 of the Limitation Act 1963 as it stands extended on account of acknowledgment of the debt. Plea of acknowledgement of the debt and the extension of limitation in view of Section 18 of the Limitation Act is well taken in the rejoinder which fact is not denied. The appeal does not have any merit and is accordingly dismissed.

Summary

The Supreme Court, in a bench comprising Hon'ble Justices Pankaj Mithal and K.V. Viswanathan, addressed the sole issue of limitation concerning an application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016. The appellant contended that the default occurred on 31.01.2017, rendering the application time-barred. However, the National Company Law Appellate Tribunal (NCLAT) held that the application was "well within the period of limitation in view of Section 18 of the Limitation Act, 1963," due to acknowledgment of the debt, which extended the limitation period. The Court noted that the plea of acknowledgment and extension under Section 18 was uncontested. Consequently, the Supreme Court dismissed the appeal for lack of merit, affirming the NCLAT's reasoning on limitation. Pending applications were disposed of accordingly.