Limitation under the IBC: a section 9 petition filed beyond three years of default was held time-barred.

Article 137 of the Limitation Act, 1963 applies to applications under sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 from the outset of the Code. A petition filed more than three years after the stated default date is time-barred unless the limitation period is extended by a valid acknowledgement of liability or part payment under sections 18 or 19 of the Limitation Act. On the facts stated, the application was filed beyond three years and no such saving circumstance was shown, so the section 9 petition was barred by limitation and could not be entertained on merits.

---

---

Issues: (i) Whether the petition under section 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation.

Analysis: The claim arose from transactions of 2012-13 and the date of default was stated as 01.04.2015. The petition was filed on 27.02.2019, beyond three years from the date of default. No acknowledgement of liability or part payment within limitation was shown so as to attract section 18 or section 19 of the Limitation Act, 1963. Applying the rule that Article 137 of the Limitation Act, 1963 governs applications under sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 from the inception of the Code, the application was time-barred.

Conclusion: The petition was barred by limitation.

Final Conclusion: The application under section 9 could not be entertained and was rejected without examination of the merits.

Ratio Decidendi: Article 137 of the Limitation Act, 1963 applies to applications under sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016, and a petition filed more than three years after default is barred unless saved by a valid acknowledgement, part payment, or condonation of delay.

---