TMI Blog2020 (1) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;ble Supreme Court in the case of B.K. Educational Services Pvt. Ltd. vs. Parag Gupta and Associates [ 2018 (10) TMI 777 - SUPREME COURT ] held that the Limitation Act is applicable to applications filed under section 7 and 9 of the Code 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, save and except in those cases, where, in the facts of the case, Section 5 of the Limitation Act may be applied to condone the delay in filing such applications. In the instant case the applicant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Registered office at Central Office at Madame Cama Road, Nariman Point, Mumbai -400021. 3. The respondent/corporate debtor M/s. Kakhani Metal Private Limited is a company incorporated under the Companies Act, 1956 on 30.06.2008, having identification No. U28112GJ2008PTC054346, having its registered office at 304, Neelkanth Plaza, Opp. Police Commissioner Office, Shahibaug, Ahmedabad. That, the Authorized Share Capital of the Corporate Debtor Company is 2,51,00,000/- and paid Up Share Capital is ₹ 2,38,50,000/-. 4. It is stated that applicant bank had sanctioned fund based working capital of ₹ 10.00 crores, credit exposure limit of ₹ 0.10 crores corresponding to notional forward contract limit of ₹ 5.00 crores t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods and services does not recover the money or does not take legal action within three years from the due date. In the instant case the debt which is claimed by the applicant through this petition is a time barred debt in as much as the last transaction i.e. counter guarantee took place on 26.03.2014 and the instant application is filed on 6th June, 2018, much after completion of three years. 10. On perusal of the record it is observed that the account of the corporate debtor was declared NPA on 28.08.2014, whereas, the application under Section 7 of I B Code has been filed on 6th June, 2018 i.e. after three years from the date of accrual of cause of action. Hon'ble Supreme Court in the case of B.K. Educational Services Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 of the I B Code on 6th June, 2018 after three years from the date of accrual of cause of action i.e. 26.03.2014. Thus, the application filed under Section 7 of I B Code is apparently time barred. 14. At this juncture it is desirable to refer Section 18 of the Limitation Act, 1963 which stipulates that where, before the expiration of the prescribed period for a suit or application in respect of any property or right, an acknowledgement of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by any person through whom he denies his title or liability, a fresh period of limitation shall be computed from the time when the acknowledgement was sig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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