Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Insolvency and Bankruptcy Code 2016 |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Insolvency and Bankruptcy Code 2016 – s.7 – Limitation Act, 1963 – s.18 – Applicability of – Default, acknowledgment in balance sheet of company – Proceedings under IBC – Limitation – Appellant filed application for initiation of Corporate Insolvency Resolution Process (CIRP) on the ground that the respondent defaulted in paying the financial debt – Date of default was mentioned as 10.06.14, when the respondent’s account was declared as a Non-Performing Asset (NPA) – Application rejected by NCLT on ground of limitation observing that the account was declared an NPA on 10.06.14, while the proceeding u/s.7 was instituted on 19.09.18, beyond three years from the date on which the right to apply accrued – Order upheld by NCLAT– On appeal, held: Judgment of NCLAT in V Padmakumar v. Stressed Assets Stabilisation Fund and Another which was relied on by NCLT has been overruled by a three-Judge Bench judgment of Supreme Court in Asset Reconstruction Company (India) Limited v Bishal Jaiswal and Anr.–An acknowledgment in a balance sheet without a qualification can be relied upon for the purpose of the proceedings under the IBC so long as the acknowledgment was within a period of three years from the original date of default – Provisions of s.18, Limitation Act are not alien to and are applicable to proceedings under the IBC – However, in the present case since proceedings are being restored back to NCLT for afresh adjudication in view of decisions of Supreme Court, the factual dispute on whether the application filed u/s.7 of the IBC would result in an initiation of the CIRP is not being entered upon – Order of NCLAT and NCLT set aside – All rights and contentions of the parties left open on the factual aspects, to be adjudicated upon before the NCLT |
Judge | N/A |
Neutral Citation | 2022 INSC 428 |
Petitioner | State Bank Of India |
Respondent | Krishidhan Seeds Private Limited |
SCR | [2022] 2 S.C.R. 1155 |
Judgement Date | 2022-04-18 |
Case Number | 910 |
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