Limitation law does not govern insolvency initiation under the IBC; stale claims require delay-and-laches scrutiny instead.

The Insolvency and Bankruptcy Code, 2016 was treated as a complete and self-contained insolvency regime with its own time-bound framework, so the Limitation Act, 1963 was held inapplicable to initiation of corporate insolvency resolution proceedings. Sections 7, 9 and 10 applications were therefore not to be rejected merely as time-barred under the general limitation law. Section 60(6) was read as reflecting the Code's own exclusion mechanism, while Section 433 of the Companies Act, 2013 and limitation rules under the RDDBFI Act and SARFAESI Act were held not to govern such initiation. In stale-claim situations, delay and laches may be examined, but not by applying the Limitation Act.

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Issues: Whether the Limitation Act, 1963 applies to initiation of corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016, and whether applications under Sections 7, 9 and 10 of that Code can be rejected as time-barred.

Analysis: The Code was held to be a complete and exhaustive code on insolvency resolution of corporate persons. Its scheme contains its own time limits for various stages of the process, and Section 60(6) expressly deals with exclusion of time during moratorium, showing that the legislature intended the Code to operate on its own footing rather than through the general limitation regime. Section 433 of the Companies Act, 2013 was held not to apply ipso facto to proceedings under the Code, and the limitation provisions in the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 were also held inapplicable to initiation of corporate insolvency resolution process. Even where stale claims are involved, the Tribunal was directed to examine delay and laches in appropriate cases rather than reject such applications as barred by the Limitation Act.

Conclusion: The Limitation Act, 1963 does not apply to initiation of corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016, and the impugned orders rejecting the applications as time-barred could not be sustained.

Ratio Decidendi: A special insolvency code with its own time-bound framework and express exclusionary provisions is a complete code, and general limitation law does not govern initiation of proceedings under it unless the statute clearly so provides.

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