Tribunal Affirms Rejection of Time-Barred Application Under I&B Code; No New Limitation Post UP RERA Order.

The Tribunal dismissed the appeal, affirming the Adjudicating Authority's rejection of the Application under Section 7 of the 'I&B Code' as time-barred. The Appellant's claim of a continuing cause of action and a fresh limitation period post the UP RERA order was unsubstantiated. The Application was filed beyond the three-year limitation period from the default date of 24.10.2010. The Tribunal noted that the Appellant had already obtained a recovery order from UP RERA, and an Execution Application had been allowed, leaving no legal basis for interference.

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Issues:
- Appeal against rejection of Application under Section 7 of the 'I&B Code'
- Calculation of default date and limitation period under Article 137 of the Limitation Act
- Continuing cause of action for filing the Application under Section 7
- Right to avail remedies under Real Estate Regulatory Authority (RERA) and IBC
- Fresh period of limitation after the order passed by UP RERA

Analysis:
1. The appeal was filed against the rejection of an Application under Section 7 of the 'I&B Code' by the Adjudicating Authority, based on an order dated 07.01.2021. The Appellant claimed dues of Rs. 87,38,000 deposited for the cost of shops through a Buyers' Agreement dated 24.02.2009.

2. The Appellant himself indicated the default date as 24.10.2010 in the Application. The limitation for filing under Section 7 is within three years from when the right to apply accrues, as per Article 137 of the Limitation Act. The Appellant argued a continuing cause of action due to non-possession of the shops.

3. The Counsel for the Appellant contended that the Appellant had the right to avail all remedies under the law, including actions under RERA and IBC. However, the Tribunal emphasized that the Application was time-barred as it was filed beyond the three-year limitation period from the default date.

4. The Tribunal noted that the Appellant's claim of a fresh limitation period after the UP RERA order dated 06.03.2019 was not substantiated in the Section 7 Application. The Application was thus rejected as it was filed beyond the statutory limitation period, despite the Appellant's argument of a continuing cause of action.

5. The Tribunal highlighted that the Appellant had already obtained an order from UP RERA for recovery of the claimed amount, and an Execution Application had been filed and allowed. Consequently, the Tribunal upheld the Adjudicating Authority's decision to dismiss the Section 7 Application, as there was no legal basis for interference.

6. In conclusion, the Tribunal dismissed the appeal, affirming the rejection of the Application under Section 7 of the 'I&B Code' due to being time-barred and lacking a valid legal foundation for a fresh limitation period post the UP RERA order.

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