Limitation in section 9 insolvency claims can be raised on appeal and may require evidence on disputed payment facts.

Limitation under Article 137 applies to section 9 insolvency applications, and a limitation objection may be raised in appeal even if not taken before the Tribunal because section 3 of the Limitation Act requires courts to consider it. The application had been filed beyond three years from the pleaded dates of default, but the actual timeliness depended on later payment activity and an alleged cheque transaction, making limitation a mixed question of law and fact. The admission order was set aside and the matter remanded to the Tribunal to decide limitation after permitting both sides to adduce evidence.

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Issues: Whether the order admitting the section 9 insolvency application was liable to be set aside on the ground of limitation and the matter remanded for evidence.

Analysis: The application under section 9 was filed beyond three years from the dates of default pleaded on the invoices. Limitation under article 137 applies to applications under the insolvency code, and the plea may be raised in appeal even if it was not taken before the Tribunal, in view of section 3 of the Limitation Act. At the same time, the question whether the claim was within time depended on facts said to be linked to later payment activity and the alleged cheque transaction, making limitation a mixed question of law and fact requiring an opportunity to lead evidence.

Conclusion: The admission order was set aside and the matter was remanded to the Tribunal to decide limitation after allowing the parties to adduce evidence. The appeal was therefore allowed to that extent, in favour of the appellant.

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