TMI BlogLaw of Limitation - Insolvency ProceedingsX X X X Extracts X X X X X X X X Extracts X X X X ..... into an agreement with Minosha India Limited ( MIL ) on 20 th February, 2015. Owing to the purported failure of MIL to perform its obligations under the agreement, NDMC terminated the agreement. On 7 th June, 2016, MIL initiated arbitration proceedings under the Arbitration and Conciliation Act, 1996 by issuing a notice of commencement of arbitration. Before the arbitration proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Arbitration and Conciliation Act, 1996 ought to have been filed within 3 years from the date of the notice of commencement of arbitration, being on or before 6 th June, 2019, when in fact the application was filed only on 28.11.2019. NDMC contended, even if limitation is not raised by a party, the court is bound to consider the issue of Limitation as per the law laid down in Indian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposed under Section 14 of the IBC. While relying on various judgments of the Hon ble Supreme Court of India and the House of Lords, held that Section 60(6) would have to be read in its plain meaning and not as being in contradiction of Section 25(2)(b). The apex court emphasised that the period of insolvency for a company under the IBC was a period of turbulence where the mana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the wisdom of the Parliament in looking to exclude the period of limitation under the Act for as long as a company is in insolvency under the IBC cannot be faulted with or interpreted in a manner that would render the provision as meaningless. Conclusion: This judgment is an appreciable one since it solidifies the position of law that the period of limitation, which otherwise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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