Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 238A – Limitation Act Insolvency and Bankruptcy Code 1963 – Art. 137 – 2016: ss. 7 |
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: ss. 7, 238A – Limitation Act, 1963 – Art. 137 – Initiation of corporate insolvency resolution process by financial creditor – Limitation period – On facts, corporate debtor defaulted in repayment and became a NPA – Financial creditor-Bank filed a petition u/s. 7 to initiate Corporate insolvency resolution process against the Corporate Debtor – Bank also filed application before DRT for issue of certificate of recovery, wherein by order dated 01.11.2016, the DRT directed the corporate debtor and others including respondent no. 1 to jointly and severally pay to the Bank – In a parallel proceeding, the High Court directing the winding up of the Corporate Debtor – Petition u/s. 7 admitted by the NCLT by order dated 06.11.2019 – Challenge to, by the first respondent claiming to be 50% shareholder, promoter, director and creditor of the Corporate Debtor – NCLAT set aside the order of the NCLT on the ground that the claim of the Financial Creditor was barred by limitation – On appeal, held: Order of the DRT in the Original Application filed by the Bank u/s. 19 of the Act, 1993, is dated 01.11.2016 – It is only thereafter that the Corporate Debtor issued Balance and Security Confirmation letter dated 17.06.2017, apart from making a request for restructuring the loan – Thus, the application filed by the bank u/s.7 was clearly within three years from the date on which the “right to apply” in terms of Art. 137 accrued – Thus, the application filed by the Bank u/s. 7 was within the period of limitation – Recovery of Debts due to Banks and Financial Institutions Act, 1993. |
Judge | N/A |
Neutral Citation | 2022 INSC 887 |
Petitioner | Punjab National Bank |
Respondent | Mr. Vijay Sitaram Dandnaik & Anr. |
SCR | [2022] 18 S.C.R. 380 |
Judgement Date | 2022-08-30 |
Case Number | 2277 |
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