30 January, 2018
The National Company Law Appellate Tribunal (‘NCLAT ’) had in an earlier case (Neelkanth Township and Construction Pvt. Ltd. v. Urban Infrastructure Trustees Limited ,13 held that the provisions of the Limitation Act, 1963 (‘Limitation Act ’) do not apply to the IBC . The SC had then dismissed an appeal from this order of NCLAT and declined to interfere with it. However, it noted that the question of law, viz whether the Limitation Act applies to IBC proceedings, has been kept open.
In a separate case, the NCLAT had passed an order that the provisions of the Limitation Act were not applicable for initiation of corporate insolvency resolution process under the IBC, thereby remanding the matter back to NCLT to reconsider the application under the IBC without going into the question of limitation. The SC , in this case, by its order dated January 10, 2018,14 stayed the remand made by the NCLAT , and will now consider the issue of applicability of Limitation Act to IBC .
13 Company Appeal (AT) (Insolvency) No. 44 of 2017.
14 B.K. Educational Services Pvt. Ltd. v. Parag Gupta and Associates, Civil Appeal No. 23988 of 2017
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
