Limitation for refund-based Section 7 claims runs under Article 137, making the insolvency application time-barred.

A Section 7 application seeking refund-linked relief under the Insolvency and Bankruptcy Code was held to be governed by Article 137 of the Limitation Act, not Article 65, because the claim was not one for possession of immovable property or any interest in it based on title. Limitation therefore ran from the date the right to apply accrued. On the record, default occurred on 10 July 2013, or at the latest 25 July 2013, and there was no acknowledgment extending time. The application filed in 2019 was consequently beyond the three-year period and not maintainable.

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Issues: Whether the Section 7 application under the Insolvency and Bankruptcy Code, 2016 was barred by limitation, and whether Article 65 of the Limitation Act, 1963 applied instead of Article 137 of the Limitation Act, 1963.

Analysis: The application arose from a claim for refund of money paid towards a flat booking, not a claim for possession of immovable property or any interest therein based on title. For that reason, Article 65 was held inapplicable. The claim was treated as one falling under Article 137, under which limitation runs from the date when the right to apply accrues. The record showed the date of default as 10 July 2013 or, at the latest, 25 July 2013, and there was no acknowledgment of debt extending limitation. The application filed in 2019 was therefore beyond the prescribed three-year period.

Conclusion: The application was barred by limitation under Article 137 of the Limitation Act, 1963 and was not maintainable.

Ratio Decidendi: A Section 7 application for recovery-related relief is governed by Article 137 of the Limitation Act, 1963, and limitation begins when the right to apply accrues, unless there is a valid acknowledgment extending time.

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