Limitation for insolvency applications under Section 7 follows Article 137, not the Code's commencement date or mortgage enforcement rules.

Limitation for a Section 7 application under the Insolvency and Bankruptcy Code is governed by Article 137 of the Limitation Act, not by the Code's commencement date or Article 62. A Section 7 petition is treated as a financial creditor's application based on default under the Code, not as enforcement of a mortgage liability. The Court also stated that its earlier ruling had to be followed in letter and spirit under Article 141 of the Constitution. The impugned judgment was set aside and the matter remitted for fresh decision on the basis that Article 137 alone applies.

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Issues: Whether the limitation for an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is governed by Article 137 of the Limitation Act, 1963 and not by the date on which the Code came into force or by Article 62 of the Limitation Act, 1963.

Analysis: The Court reiterated that the commencement of the Insolvency and Bankruptcy Code, 2016 is irrelevant for computing limitation for applications filed under the Code. It also clarified that an application under Section 7 is not one for enforcement of a mortgage liability, but a petition by a financial creditor alleging default within the meaning of the Code. On that basis, the Court held that Article 137 of the Limitation Act, 1963 applies to such applications. The Court further noted that its earlier decision had to be followed in letter and spirit under Article 141 of the Constitution of India.

Conclusion: The impugned judgment was set aside and the matter was directed to be decided afresh on the footing that Article 137 of the Limitation Act, 1963 alone applies.

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