2019 (10) TMI 224 - SUPREME COURT

Initiation of CIRP - applicability of time limitation - section 7 of I & B Code - HELD THAT:- An application under Section 7 of the Code does not purport to be an application to enforce any mortgage liability. It is an application made by a financial creditor stating that a default, as defined under the Code, has been made, which default amounts to ₹ 1,00,000/- or more which then triggers the application of the Code on settled principles that have been laid down by several judgments of this Court.

Article 141 of the Constitution of India mandates that our judgments are followed in letter and spirit. The date of coming into force of the IBC Code does not and cannot form a trigger point of limitation for applications filed under the Code. Equally, since “applications” are petitions which are filed under the Code, it is Article 137 of the Limitation Act which will apply to such applications.

The matter to be determined afresh - appeal allowed by way of remand.