TMI Blog2020 (2) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... uted within limitation period under SARFEASI Act - Therefore, the Respondent is entitled for the exclusion of time period under Section 14(2) of Limitation Act i.e. the period of 3 years and 6 months. After exclusion of this period the application filed under Section 7 of I B Code is within limitation period. The application under Section 7 is within limitation and there is no force in the argument of Learned counsel for the Appellant that the application is time barred - appeal dismissed. - Company Appeal(AT) (Insolvency) No.672 of 2019 - - - Dated:- 22-11-2019 - Justice Jarat Kumar Jain Member (Judicial), Mr. Balvinder Singh Member (Technical) And Dr. Ashok Kumar Mishra Member (Technical) For the Appellants : Mr. Aritra Bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebtor vide sanction letter dated 12.2.2012. The Corporate Debtor execute agreement of hypothecation of book debts. The Corporate Debtor availed cash credit from time to time. 3. According to financial creditor, the corporate debtor committed default in paying financial debt. The account was declared NPA on 31.03.2013 on account of irregularities in payment by the corporate debtor. Demand Notice under Section 13(2) of SARFEASI Act, 2002 was issued on 18.01.2014. Thereafter on 13.2.2014 notice under Section 13(4) of SARFEASI Act, 2002 was issued to corporate debtor. On 19.12.2014 the Corporate Debtor filed a writ petition bearing No.33799(W) of 2014 against the financial creditor challenging the notice under Section 13(2) of SARFEAS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from the inception of the Code, Article 137 of the Limitation Act gets attracted. The right to sue , therefore, accrues when a default occurs. If the default has occurred over three years prior to the date of filing of the application, the application would be barred under Article 137 of the Limitation Act. 6. It is also submitted that Hon ble Supreme Court in the recent judgement Vashdeo R Bhojwani Vs Abhyudaya Cooperative Bank Ltd ^ Anr, Civil Appeal No.11020 of 2018 decided on 2nd September, 2019 and Gaurav Hargovindbhai Dave Vs Asset Reconstruction Company (India) Ltd Anr, Civil Appeal No.4952 of 2019 decided on 13th September, 2019 again held that Article 137 of the Limitation Act is applicable to Section 7 of the I B C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the application under Section 7 of I B Code on 27.08.2018. It is true that in the light of judgement of Hon ble Supreme Court in the case of B.K. Educational Services Pvt Ltd Vs Parag Gupta and Associates 2018 SCC OnLine SC 1921 that the application under Section 7 of the I B Code be governed by Article 137 of the Limitation Act and within three years the Financial Creditor/respondent can file application. The respondent was quite vigilant in his rights and cannot be said that the respondent was negligent. He has bonafidely prosecuted his application under SARFEASI Act. Therefore, as per Section 14(2) of Limitation Act in computing the period of limitation the time during which the respondent has been prosecuting with due diligence anothe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
