Filing an application u/s 7 of the IBC after expiry of three years from the date of accrual would be considered time barred

Last updated: 19 April 2021

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The Supreme Court has ruled that an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) will be considered time-barred if it is filed more than three years after the debt became due. This decision overturns the NCLAT's earlier judgment which had admitted such an application, highlighting the importance of adhering to limitation periods in insolvency proceedings.

Court :
Supreme Court of India

Brief :
This appeal under Section 62 of the Insolvency and Bankruptcy Code 2016, hereinafter referred to as the ‘IBC’, is against a judgment and order dated 22nd November 2019, passed by the National Company Law Appellate Tribunal (NCLAT), dismissing Company Appeal (AT) (Insolvency) No.672 of 2019, filed by the Appellants, challenging an order dated 25th April 2019, of the National Company Law Tribunal (NCLT), Kolkata Bench, admitting the application filed by the Respondent No.1 as Financial Creditor, under Section 7 of the IBC being CP(IB) No.1202/KB/2018, thereby initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Debi Fabtech Private Ltd.

Citation :
CIVILAPPEAL NO. 9198 OF 2019

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