Limitation under the Insolvency Code barred an insolvency petition filed more than three years after default.

An insolvency petition under Sections 8 and 9 of the Insolvency and Bankruptcy Code was held time-barred because the default arose from invoices issued in 2015 and the petition was filed more than three years later. Article 137 of the Limitation Act applied to determine limitation from the date of default, and the applicable three-year period had expired. As no sufficient basis for condonation was shown, the claim could not be entertained and the petition was liable to be dismissed.

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Issues: Whether the insolvency petition under Sections 8 and 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation.

Analysis: The default was found to have arisen from invoices issued in 2015, while the petition was filed more than three years later. The limitation principles applicable to applications under Sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 were applied, with Article 137 of the Limitation Act, 1963 governing the period of limitation from the date of default. Since the default had occurred beyond the three-year period and no sufficient basis for condonation was shown, the claim could not be entertained.

Conclusion: The petition was barred by limitation and was liable to be dismissed.

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