Tribunal Quashes Order on IBC Application: Application Barred by Limitation, Cheque Authenticity Unverified, Corporate Debtor Freed.

The Tribunal set aside the impugned order admitting the Section 7 IBC application, finding it barred by limitation and the cheque's authenticity unverified. The Corporate Debtor was released from the CIRP, with actions by the Interim Resolution Professional declared illegal. The matter was remitted for cost determination, and the Appeal was allowed.

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Issues Involved:
1. Whether the Application under Section 7 of the IBC filed by the Respondent No. 1 is barred by limitationRs.
2. Whether the cheque relied upon to establish acknowledgment of debt was genuineRs.

Issue 1 - Barred by Limitation:
The appeal was filed by the Appellant against the order admitting an application under Section 7 of the IBC by the Financial Creditor. The Appellant contended that the application was hit by limitation as the date of default mentioned was beyond the limitation period. The Respondent argued that the application was within the limitation period as the default occurred when the cheque was dishonored. The Tribunal analyzed the facts and cited a Supreme Court judgment, determining that the application was indeed barred by limitation. The Court found in favor of the Appellant on this issue.

Issue 2 - Genuine Cheque:
The Appellant disputed the genuineness of the cheque relied upon by the Respondent to establish acknowledgment of debt. The Appellant requested the Adjudicating Authority to direct the production of the original cheque for verification, but no decision was made on this matter. As the authenticity of the cheque remained in dispute, the Tribunal ruled in favor of the Appellant on this issue as well.

Conclusion:
After careful consideration and review of the arguments and evidence presented, the Tribunal found that the Adjudicating Authority had erred in not addressing the issues of limitation and the disputed cheque. Consequently, the impugned order was set aside, and the Application under Section 7 of the IBC filed by the Financial Creditor was dismissed. The Corporate Debtor was released from the Corporate Insolvency Resolution Process, and all actions taken by the Interim Resolution Professional were declared illegal. The matter was remitted to the Adjudicating Authority to determine the fees and costs of the CIRP, to be borne by the Financial Creditor. The Appeal was allowed with the mentioned observations and directions, with no costs incurred. The Registry was instructed to communicate the Judgment to the Adjudicating Authority.

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