Limitation under the Insolvency Code bars stale Section 9 claims absent timely written acknowledgement of liability.

A Section 9 insolvency application was held to be governed by Article 137 of the Limitation Act, 1963, so a petition filed more than three years after default is barred unless there is a valid written acknowledgement of liability within the limitation period. The operational creditor relied on an invoice dated 10.05.2011 but initiated proceedings only on 28.05.2018, and no timely acknowledgement by the corporate debtor was shown. Section 18 of the Limitation Act was therefore inapplicable, making the insolvency petition time-barred and not maintainable.

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Issues: Whether the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation and therefore not maintainable.

Analysis: The debt arose from an invoice dated 10.05.2011 and the operational creditor initiated the Section 9 proceedings on 28.05.2018. The applicable limitation for such proceedings is governed by Article 137 of the Limitation Act, 1963, as applied to insolvency applications from inception of the Code. A petition based on a default older than three years is barred unless there is a valid written acknowledgement of liability within the limitation period. No such acknowledgement by the corporate debtor was shown before expiry of the prescribed period, and Section 18 of the Limitation Act, 1963 was therefore inapplicable.

Conclusion: The petition was time-barred and not maintainable.

Final Conclusion: The insolvency application failed on limitation and was dismissed.

Ratio Decidendi: An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is governed by Article 137 of the Limitation Act, 1963, and a stale debt beyond three years cannot be enforced in insolvency proceedings absent a valid written acknowledgement of liability within time.

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