Limitation under Article 137 in section 7 insolvency applications runs from the DRT recovery order, making the claim maintainable.

An application under section 7 of the Insolvency and Bankruptcy Code was held to be within limitation because the debt had been reduced to a recovery order by the DRT on 06.11.2017, and the section 7 application was filed on 05.06.2018. Applying the three-year period under Article 137 of the Limitation Act, the tribunal treated the DRT order date as the point when the debt became due and payable. The limitation objection was therefore rejected, and the application was found maintainable.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation.

Analysis: The debt had already been pursued before the Debt Recovery Tribunal, which passed an order of recovery on 06.11.2017. The application under section 7 was filed on 05.06.2018, i.e. within three years of that order. An application under section 7 is governed by the three-year period under Article 137 of the Limitation Act, 1963, and the date from which the debt became due and payable was taken as the date of the DRT order. The objection based on limitation was therefore not accepted.

Conclusion: The application was not barred by limitation and was maintainable.

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