Tribunal Upholds Decision: Insolvency Application Filed Within Limitation Period, Rejects Time-Bar Argument.

The Tribunal dismissed the appeal, affirming the Adjudicating Authority's decision that the application under Section 7 of the Insolvency and Bankruptcy Code was not time-barred. The application, filed on 28th August 2020, was deemed within the three-year limitation period from the last payment made on 31st July 2018, despite the initial default date being 25th August 2017. The Tribunal found no merit in the appellant's argument, as the relevant documents, including the ledger account, supported the Authority's findings.

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Issues:
- Appeal against the Order dated 18th February, 2022 passed by the Adjudicating Authority in CP No. 1258/MB/I&B/2020 under Section 7 of the Insolvency and Bankruptcy Code, 2016.
- Barred by time due to 'Date of Default' mentioned as 25th August, 2017, and the Application filed on 28th August, 2020.

Analysis:
1. The appeal was filed against the Order passed by the Adjudicating Authority under Section 7 of the Insolvency and Bankruptcy Code, 2016. The issue raised was that the Application was barred by time as the 'Date of Default' was mentioned as 25th August, 2017, and the Application was filed on 28th August, 2020.

2. The Appellant argued that the Application was time-barred since it was filed after three years from the 'Date of Default.' However, the Adjudicating Authority, in its Order, noted that the last payment by the Corporate Debtor was made on 31st July, 2018. As the Application was filed on 28th August, 2020, within three years from the last payment, it was not barred by time.

3. The Adjudicating Authority emphasized that the details of the last payment were part of the Application itself and were considered during the proceedings. The Authority found that since the last payment was made within three years of the Application filing date, the Application was well within the limitation period. The Adjudicating Authority rejected the argument that the Application was time-barred based on these findings.

4. The Appellant cited a Supreme Court judgment to support their argument regarding the date of default. However, the Tribunal distinguished the present case by highlighting that the relevant documents, including the ledger account showing the last payment on 31st July, 2018, were submitted with the Application. The Tribunal concluded that the Appellant was entitled to the benefit of the 3-year limitation period from the date of the last payment.

5. In light of the above analysis, the Tribunal dismissed the Appeal, finding no merit in the argument that the Application was barred by time. The decision was based on the fact that the Application was filed within three years from the date of the last payment, as evidenced by the records submitted during the proceedings.

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