Limitation for Section 7 insolvency applications runs from default date; delayed filing beyond three years was time-barred.

An application under Section 7 of the Insolvency and Bankruptcy Code, 2016 must be filed within the three-year limitation period under Article 137 of the Limitation Act, computed from the date of default, ordinarily reflected by the date of NPA classification. Here, the corporate debtor's account was classified as NPA on 17 June 2013, but the Section 7 application was filed on 1 April 2019. On that basis, the application was beyond limitation and could not validly trigger CIRP. The admission order was therefore unsustainable, and the appeal succeeded.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation on the ground that the default occurred in 2013.

Analysis: The account of the corporate debtor was classified as NPA on 17 June 2013. The application under Section 7 was filed on 1 April 2019. The applicable limitation period for such an is three years under Article 137 of the Limitation Act, and it runs from the date of default, which in the present case was the date of NPA classification. On that basis, the application was beyond limitation and could not validly trigger CIRP.

Conclusion: The application under Section 7 was barred by limitation and the admission order could not be sustained. The appeal succeeded and the impugned order was set aside.

Ratio Decidendi: An application under Section 7 of the Insolvency and Bankruptcy Code, 2016 must be filed within the three-year limitation period under Article 137 of the Limitation Act, computed from the date of default, ordinarily reflected by the date of NPA classification.

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