Limitation for insolvency applications runs from default or valid acknowledgment; pending proceedings before other forums do not extend time.

An application under Section 7 of the Insolvency and Bankruptcy Code is subject to Article 137 of the Limitation Act, as applied through Section 238A, and must be filed within three years from default or a valid acknowledgment. On the stated facts, the account was classified as an NPA in 2014 and the application was filed in 2019; even the later letters relied on as acknowledgments did not save limitation beyond the extended period. Pendency before other forums did not stop time from running because the Code operates as a complete code with overriding effect, so the insolvency application was treated as time-barred.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation and therefore liable to be rejected.

Analysis: The limitation for an application under Section 7 is governed by Article 137 of the Limitation Act, 1963 by reason of Section 238A of the Insolvency and Bankruptcy Code, 2016. The right to apply accrues on default, and where default occurred more than three years before filing, the application is barred unless delay is condoned in accordance with law. On the facts, the account was classified as non-performing asset on 23.05.2014 and the application was filed on 05.02.2019. Even taking the letters dated 08.09.2015 as acknowledgments, the extended period expired on 08.09.2018. Pending proceedings before other forums did not extend limitation, as the Insolvency and Bankruptcy Code operates as a complete code with overriding effect.

Conclusion: The application under Section 7 was time-barred and was correctly rejected.

Final Conclusion: The appeal fails because the insolvency application was not instituted within the prescribed limitation period and the rejection order required no interference.

Ratio Decidendi: An application under Section 7 of the Insolvency and Bankruptcy Code, 2016 must be filed within the limitation period applicable under Article 137 of the Limitation Act, 1963, computed from the date of default or a valid acknowledgment, and pendency of proceedings before other fora does not extend that period.

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