Appeal dismissed for exclusion period, Section 9 application time-barred.

The Tribunal dismissed the Appeal, upholding the Adjudicating Authority's decision that the Appellant was not entitled to exclusion of the period spent during SICA proceedings, leading to the Application under Section 9 of the I&B Code being time-barred.

---

---

Issues:
1. Whether legal proceedings for recovery of operational debt were suspended under section 22(1) of the SICARs.
2. Whether the Appellant is entitled to exclusion in computing the period of limitation under section 22(5) of the SICARs.

Issue No. 1:
The Appellant, a printing and packaging material supplier, filed an Appeal under Section 61 of the Insolvency and Bankruptcy Code against an order rejecting their Application under Section 9 of the I&B Code as time-barred. The Corporate Debtor failed to make payments, leading to financial distress and referral to BIFR. The Appellant argued for exclusion of the period under SICA, claiming the debt acknowledgment in 2005 as the starting point for limitation calculation. The Adjudicating Authority rejected the Application, stating SICA provisions do not apply to I&B Code proceedings. The Appellant challenged this decision, citing BIFR observations and the interplay between SICA and I&B Code.

Issue No. 2:
The Appellant contended that the period till 2017, when the rehabilitation scheme was not implemented, should be excluded for limitation calculation under section 22(5) of SICA. However, it was established that the Appellant was not part of the BIFR-approved scheme and had sought civil court intervention for debt recovery. The Tribunal held that the Appellant's remedy was not suspended under SICA, thus not entitled to claim an extension of the limitation period. The judgment differentiated the present case from precedent, concluding that the Appellant was not eligible for exclusion of the period spent in SICA proceedings, rendering the Application under Section 9 of the I&B Code time-barred.

In summary, the Tribunal dismissed the Appeal, upholding the Adjudicating Authority's decision that the Appellant was not entitled to exclusion of the period spent during SICA proceedings, leading to the Application under Section 9 of the I&B Code being time-barred.

---