IBC section 7 limitation turns on default date, and later notices or proceedings do not extend time without acknowledgment.

Applications under section 7 of the Insolvency and Bankruptcy Code are subject to the Limitation Act, 1963 from the Code's inception, and Article 137 supplies a three-year period running from the date of default. On the stated facts, default occurred in 2009 and the application was filed in July 2018, so the claim was time-barred. A prior demand notice and pending DRT/SARFAESI proceedings did not extend limitation, and no acknowledgment of debt within three years was shown to attract section 18 of the Limitation Act.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation, and whether any acknowledgment of debt extended the limitation period.

Analysis: The Limitation Act, 1963 applies to proceedings under the Insolvency and Bankruptcy Code from the inception of the Code. Consequently, Article 137 governs applications under section 7, and the three-year limitation period begins from the date of default. The record showed default in 2009, while the application was filed in July 2018. The earlier demand notice and pending DRT/SARFAESI proceedings did not extend limitation. The material on record did not disclose any acknowledgment of debt within three years preceding the filing date so as to attract section 18 of the Limitation Act, 1963 or extend the period of limitation.

Conclusion: The application was held to be barred by limitation and was not admitted.

Ratio Decidendi: Applications under section 7 of the Insolvency and Bankruptcy Code, 2016 are subject to the Limitation Act, 1963 from the inception of the Code, and unless a valid acknowledgment or other legally recognised extension is shown within the limitation period, a claim arising from a default beyond three years is time-barred.

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