Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2016 Insolvency and Bankruptcy Code |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Insolvency and Bankruptcy Code, 2016: s. 9 – Initiation of Corporate Insolvency Resolution Process (CIRP) – Applicability of Limitation Act – Pursuant to agreement, respondent let out a crane on hire to the appellant – Respondent raised invoices on the appellant between 03.01.2013 and 04.03.2013 for a sum of Rs. 38,84,709/- – On 14.10.2013, Respondent issued statutory notice to Appellant-Company for its winding up for payment of invoices– Appellant replied to notice on 07.11.2013, acknowledging its liability to the Respondent – Respondent filed a winding up petition before High Court which was returned for curing of defects, first time on 05.01.2016 and second time on 24.05.2016 – IBC came into force on 01.12.2016 – Respondent again issued a demand notice on 14.11.2017 u/s. 8(1) of IBC calling upon appellant to repay its dues – On 30.03.2018, the Respondent filed petition u/s. 9 of the IBC for initiation of CIRP in the NCLT, which was dismissed for being barred by limitation – Respondent approached NCLAT which set aside the order passed by NCLT and remitted the case back to NCLT for admission – NCLAT directed that before admission of the case, it would be open to the Respondent to settle the matter with the Appellant and that right to apply under s. 9 accrued to appellant on 01.12.2016, when IBC came into force and, therefore, application u/s.9 filed by the Appellant is within the period of three years from the date of right to apply accrued – Hence instant appeal – Held: The pendency of the proceedings in a parallel forum is not sufficient cause for the delay in filing an application u/s. 9 of the IBC – Material date is on which the right to sue accrued and if the cause of action continued – By the time the application was filed, the claim had become barred by limitation as is clear from the averments in the winding up petition, that there was no acknowledgment of liability after 07.11.2013 and last payment was made in June 2013 – No help will be provided by ss. 14 and 18 of the Limitation Act as the last acknowledgment was in 2013 and the High Court neither suffered from any defect of jurisdiction to entertain the winding up application nor was unable to entertain the winding up application for any other cause of a like nature – Initiation of proceedings in High Court would not save limitation for initiation of proceedings for initiation of CIRP in the NCLT – Order of NCLAT is unsustainable in law. |
Judge | Hon'ble Ms. Justice Indira Banerjee |
Neutral Citation | 2022 INSC 986 |
Petitioner | M/s Tech Sharp Engineers Pvt. Ltd. |
Respondent | Sanghvi Movers Limited |
SCR | [2022] 13 S.C.R. 922 |
Judgement Date | 2022-09-19 |
Case Number | 296 |
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