Limitation for insolvency claims under the Code follows Article 137, not Article 1 for accounts, and this application was time-barred.

An application under Section 9 of the Insolvency and Bankruptcy Code is governed by Article 137 of the Limitation Act, not Article 1, because it is not a suit relating to accounts. Article 1 applies only to mutual, open and current accounts involving reciprocal demands, whereas limitation for Sections 7 and 9 proceedings begins when the right to apply accrues under Article 137. On the facts, the claim was based on invoices and the last relevant payment was outside the three-year period, so the proceeding was time-barred and could not be supported by Article 1. The limitation-based rejection of the insolvency application was upheld.

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Issues: Whether an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was governed by Article 1 of the Limitation Act, 1963 on the basis of a mutual, open and current account, or by Article 137 of the Limitation Act, 1963, and whether the application was barred by limitation.

Analysis: Article 1 of the Limitation Act applies to suits relating to accounts and governs the balance due on a mutual, open and current account where reciprocal demands exist. An application under Section 9 of the Insolvency and Bankruptcy Code is not a suit relating to accounts. For proceedings under Sections 7 and 9 of the Code, the applicable limitation provision is Article 137, under which time begins to run when the right to apply accrues. The record showed that the claim was founded on invoices and the last relevant payment was also beyond three years before the application date, so the proceeding could not be saved by Article 1. The plea for condonation of delay was also not accepted on the facts.

Conclusion: Article 137 applied to the Section 9 application, not Article 1, and the application was time-barred.

Final Conclusion: The rejection of the insolvency application on limitation grounds was upheld and the appeal failed.

Ratio Decidendi: An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is governed by Article 137 of the Limitation Act, 1963, and not by Article 1 meant for suits relating to accounts.

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