Limitation for Section 7 insolvency applications remains under Article 137, and a DRT recovery certificate can create a fresh cause of action.

Article 137 of the Limitation Act, 1963 governs a Section 7 application under the Insolvency and Bankruptcy Code, so limitation runs from when the right to apply accrues and the twelve-year period under Article 62 for mortgaged debt does not apply. A later Debt Recovery Tribunal recovery certificate or final adjudication can, however, create a fresh cause of action for insolvency proceedings, and an application filed after such certificate was within time. The limitation objection therefore failed, and the Section 7 application was not time-barred.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation and whether the recovery certificate issued by the Debt Recovery Tribunal gave rise to a fresh period of limitation.

Analysis: Article 137 of the Limitation Act, 1963 governs an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, and limitation ordinarily runs from the date when the right to apply accrues. The earlier view that a mortgaged debt could be treated as recoverable for twelve years under Article 62 was held inapplicable to a Section 7 application. However, the later judgment and recovery certificate of the Debt Recovery Tribunal constituted a fresh cause of action for initiating insolvency proceedings, and the application filed after that certificate was within limitation.

Conclusion: The limitation objection failed, and the application under Section 7 was not time-barred.

Ratio Decidendi: A recovery certificate or final adjudication by the Debt Recovery Tribunal can give rise to a fresh cause of action for a Section 7 insolvency application, which remains governed by Article 137 of the Limitation Act, 1963.

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