Limitation bars insolvency claim where the debt was time-barred and later settlement could not revive it.

An application under section 9 of the Insolvency and Bankruptcy Code was barred by limitation because the operational debt became due on 26.02.2013 and the petition was filed in 2018, beyond the three-year period under Article 137 of the Limitation Act, as made applicable by section 238A of the Code. A later debt settlement agreement did not revive the already time-barred claim, because section 18 of the Limitation Act requires a written acknowledgment before expiry of limitation, which was not established on the facts.

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Issues: Whether the application under section 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation and whether the subsequent debt settlement agreement could revive the time-barred debt.

Analysis: The operational debt arose and became due on 26.02.2013. The application was filed in 2018, well beyond the three-year limitation period applicable under Article 137 of the Limitation Act, 1963. In view of section 238A of the Insolvency and Bankruptcy Code, 2016, the Limitation Act applies to proceedings before the adjudicating authority. The later debt settlement agreement executed on 01.03.2017 could not revive a debt that had already become time-barred. Section 18 of the Limitation Act, 1963 applies only where there is a written acknowledgment before expiry of the prescribed period, which was not established on the facts found.

Conclusion: The application was held to be time-barred and liable to be dismissed.

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