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The appeal was against the order of the National Company Law Tribunal (NCLT) in Delhi, which had rejected the financial creditor's application filed under Section 7 of the Insolvency and Bankruptcy Code of 2016
The National Company Law Appellate Tribunal at Delhi has recently observed that an application would be barred by time would be rejected even if no defence of limitation was raised.
“It is well settled that the application which is barred by time has to be rejected by the Court even if no defence of limitation was raised. We are of the view that the Adjudicating Authority has rightly dismissed the Application Section 7 as barred by time. There is no merit in the Appeal. The Appeal is dismissed,” the court observed.
The National Company Law Appellate Tribunal (NCLAT) in Delhi, consisting of Chairperson Justice Ashok Bhushan, Technical Member Barun Mitra, and Technical Member Arun Baroka was hearing an appeal filed by a financial creditor.
The appeal was against the order of the National Company Law Tribunal (NCLT) in Delhi, which had rejected the financial creditor's application filed under Section 7 of the Insolvency and Bankruptcy Code of 2016.
The NCLT in Delhi had rejected the Section 7 application of the creditor, citing that it was barred by limitation.
The counsel representing the financial creditor argued that there was confirmation of the account by the Corporate Debtor on April 1, 2016, and further, TDS deduction was made on June 9, 2016.
He added that since the application was filed on February 4, 2020, it was not barred by time.
The appellant argued that the issue of limitation was never raised during the proceedings, and the matter was heard and reserved by the NCLT without this issue being considered.
Upon perusal of the legal notice sent by the financial creditor to the corporate debtor on April 1, 2016, requesting confirmation of the accounts from April 1, 2015, to March 31, 2016, the tribunal determined that even if the notice was accepted, the financial creditor's application, which was filed on February 4, 2020, was still barred by limitation.
Therefore, the court proceeded to dismiss the appeal filed by the financial creditor against the order of NCLT.
Advocates Vivek Jain, Suchitra Kumbhat, Abhinav Jain, Honey Kumbhat appeared for the financial creditor M/s. Sheetal Impex Pvt. Ltd.
Case title: M/s. Sheetal Impex Pvt. Ltd. Vs Shree Swastic Sales Corporation Pvt. Ltd
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