IBC limitation under Article 137 may restart on part payment, acknowledgment, and later knowledge of recovery events.

Limitation for a Section 9 Insolvency and Bankruptcy Code application was assessed under Article 137 of the Limitation Act, as applied through Section 238A, with Sections 18 and 19 relevant to acknowledgment and part payment. On the facts, the earlier arbitral award and original default date did not end the inquiry because a later deduction and recovery decision, partial payment in 2016, and the creditor's later knowledge through RTI disclosure were treated as creating a fresh limitation point. The application was therefore held to be within limitation, and the adjudicating authority's dismissal was set aside.

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Issues: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation, and whether the later payment, internal recovery decision, and subsequent knowledge could extend or restart limitation.

Analysis: The limitation question was examined on the basis that proceedings under the Insolvency and Bankruptcy Code are governed by Article 137 of the Limitation Act, 1963 through Section 238A, with Sections 18 and 19 also being relevant where there is acknowledgment of liability or part payment. The earlier arbitral award and the original date of default did not conclude the matter finally for limitation purposes because the award was implemented, a later deduction and recovery decision was made, the amount was partly paid in 2016, and the creditor obtained knowledge of the deduction only after the RTI disclosure. The dismissal of the challenge to the arbitral award on 06.10.2018 and the part payment/recovery events were treated as giving rise to a fresh point of limitation on the facts of the case.

Conclusion: The application under Section 9 was held to be within limitation and the dismissal of the application by the adjudicating authority was set aside.

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