Limitation for insolvency initiation bars a Section 9 application filed beyond three years from default.

An application under Section 9 of the Insolvency and Bankruptcy Code was held barred by limitation because the date of default was 21.04.2016 and the filing on 10.10.2019 fell beyond the three-year period under Article 137 of the Limitation Act, 1963. The Tribunal held that a time-barred claim cannot sustain initiation of the insolvency process, and the application was rejected.

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Issues: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation.

Analysis: The date of default was taken as 21.04.2016, and the application was filed on 10.10.2019, beyond the three-year period prescribed by Article 137 of the Limitation Act, 1963. On this basis, the application was held to be beyond limitation and incapable of sustaining initiation of the insolvency process.

Conclusion: The application was barred by limitation and was rejected.

Ratio Decidendi: An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 must be filed within the limitation period running from the date of default, and a time-barred claim cannot be used to initiate the insolvency process.

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