TMI Blog2024 (1) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... construed, dealt with the issue as to whether the debt was barred by limitation. A passing reference in the order of the NCLAT to whether the debt was in dispute must be read in the context of the nature of the appeal which arose from an order of the NCLT that the debt was barred by limitation. Hence, it would be inappropriate to read the order of the NCLAT as concluding the issue in regard to whether the application under Section 7 was or was not liable to be admitted. A stray observation in the order of the NCLAT cannot be regarded as a conclusive determination on merits - it was inappropriate for the NCLAT to direct the NCLT to admit the application under Section 7 straightaway without an evaluation of the rival contentions on merits. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a default in terms of Section 3(12) of the IBC. However, keeping in view that the date of NPA in respect of all the four loans are between 26.06.2011 to 31.07.2011 and the Petition has been filed only on 30th August, 2019, the limitation issue is very pertinent in the matter. The Bench has to take a call whether the debt is time-barred or not, in terms of provisions of the Limitation Act, 1963. The Bench before proceeding further would like to mention certain dates and events subsequent to the invocation of guarantee which will help in deciding the matter. 3. The order of the NCLT was challenged in appeal by the respondents. The NCLAT, by its judgment dated 9 May 2023, set aside the order of the NCLT and held that the finding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel appearing on behalf of the respondents. 8. The application under Section 7 was originally dismissed by the NCLT on the ground that the debt was barred by limitation. When the order of the NCLT was questioned in appeal, the NCLAT set aside the order of the NCLT as being patently illegal . Once the order of the NCLT was set aside, the order would cease to exist. The observations in regard to whether there was a debt due and payable would also not exist with the setting aside of the order. The order of the NCLAT, properly construed, dealt with the issue as to whether the debt was barred by limitation. A passing reference in the order of the NCLAT to whether the debt was in dispute must be read in the context of the nature of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
