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2017 (11) TMI 1524 - NATIONAL COMPANY LAW TRIBUNAL, MUMBAICorporate insolvency procedure - whether or not this petition should be admitted u/s 9 when one of the invoices is time barred by the time Company Petition filed? - period of limitation applicable to insolvency procedures - Held that:- If limitation is said as not applicable or giving life to time barred debts under the cover of Insolvency and Bankruptcy Code, it will be nothing but opening the lid of uncertainty giving a big hand to the persons not diligent of their rights. If this is the case, tomorrow a person forgets of his remedy many years before will come saying company is to be liquidated basing on a time barred debt. Moreover, so far it is a legitimate expectation of everybody - creditors as well as debtors that time is prescribed for every right of remedy including a remedy for liquidation, therefore lest doctrine of limitation be diluted. It can be an argument that since it is not a suit as mentioned in section 3 of Limitation Act 1963, it can’t be applied to the proceedings of IBC. My answer to the point is Tribunals are already counted is equivalent to Courts as long as Tribunals have trappings of courts, likewise when an order is passed giving finality to a controversy, it is as good as decree, therefore any proceeding given finality to a controversy, such judicial proceeding can be like any other suit proceeding, in any event application being included in section 3 of Limitation Act, this petition under IB code shall be construed as suit or application, as the case may be, under Limitation Act. There is a situation where Limitation Act could not reach, that is Constitution, there whenever any writ either under Article 226 or on fundamental rights is filed, since constitution governs every other statute, the Limitation Act will remain applicable to other statutes, for this reason only, delay and laches doctrine has been carved out to meet the situation in constitutional matters. Thus in whatever line so far limitation is applied to winding up cases, in the same line, prescription of limitation is applicable to the Code as well. As long as limitation is not prescribed under any specific enactment, it goes without saying Limitation Act, 1963 is automatically applicable to the Code as well. Company Petition is dismissed with liberty to the petitioner to proceed in respect to the claim within limitation by invoking section 14 of Limitation Act 1963.
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