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of <h1>Tribunal grants Appeal, overturns Order, directs Authority to proceed under specified timeline</h1> <h3>Canara Bank (Erstwhile Syndicate Bank) Versus M/s R.S. Builtwell Private Limited</h3> Canara Bank (Erstwhile Syndicate Bank) Versus M/s R.S. Builtwell Private Limited - TMI Issues:1. Appeal against Order of Adjudicating Authority dismissing Application under Section 7 of Insolvency and Bankruptcy Code as barred by Limitation.2. Interpretation of the period of Limitation for filing Application under Section 7.3. Applicability of Sections 18 and 19 of the Limitation Act, 1963 in insolvency proceedings.4. Consideration of acknowledgment of debt and fresh cause of action in insolvency cases.Analysis:Issue 1:The Appellant challenged the Order of the Adjudicating Authority dismissing their Application under Section 7 of the Insolvency and Bankruptcy Code as barred by Limitation. The Adjudicating Authority relied on the judgment in 'Ishrat Ali' case and considered the date of default from the declaration of NPA in 2008. The Appellant argued that the Limitation period started from the issuance of the Recovery Certificate in 2021, well within three years. The Tribunal analyzed the arguments and referred to relevant judgments to determine the correct starting point for the Limitation period.Issue 2:The key argument revolved around the interpretation of the period of Limitation for filing an Application under Section 7. The Respondent contended that action under SARFAESI Act cannot be counted for exclusion under Section 14(2) of the Limitation Act. The Appellant highlighted instances of restructuring and settlements to extend the Limitation period. The Tribunal considered these arguments and examined the applicability of Section 14(2) in insolvency cases, emphasizing the need for due diligence in prosecuting the Application.Issue 3:The Tribunal assessed the applicability of Sections 18 and 19 of the Limitation Act, 1963 in insolvency proceedings based on the judgments in 'Asset Reconstruction Company (India) Limited' and 'Dena Bank (Now Bank of Baroda)'. It discussed the condonable delay in filing petitions under the IBC, acknowledgment of debt, and the extension of Limitation period by three years upon acknowledgment. The Tribunal emphasized the importance of acknowledgment and fresh cause of action in determining the filing of applications under Section 7.Issue 4:Considering the facts of the case, the Tribunal observed the timeline of events from the loan sanction to the initiation of recovery proceedings. It noted the issuance of possession notices and the subsequent failure of the Respondent to comply with payment orders. The Tribunal found that the Application filed by the Appellant was within the Limitation period as per the 'Dena Bank' judgment, which allowed for the initiation of proceedings within three years from the date of the Recovery Certificate. Consequently, the Tribunal allowed the Appeal, set aside the Impugned Order, and directed the Adjudicating Authority to proceed with the Admission under the Code within a specified timeline.In conclusion, the Tribunal's detailed analysis of the issues involved in the judgment provides clarity on the interpretation of Limitation periods, acknowledgment of debt, and the applicability of relevant sections of the Limitation Act in insolvency cases.
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