Limitation for IBC insolvency application depends on BIFR proceedings; Tribunal must reconsider the record before deciding timeliness.

The limitation for a Section 7 Insolvency and Bankruptcy Code application had to be assessed in light of prior proceedings before the Board for Industrial and Financial Reconstruction, because such proceedings could affect computation under Article 137 of the Limitation Act, 1963 and the embargo under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985. As the record did not clearly show that the Tribunal had considered the BIFR order and related material, the limitation finding could not be sustained on the existing record. The matter required reconsideration by the Tribunal after taking the BIFR order into account, if it was on record.

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Issues: Whether the Section 7 application under the Insolvency and Bankruptcy Code, 2016 was barred by limitation in view of the proceedings before the Board for Industrial and Financial Reconstruction, and whether the matter required remand for reconsideration.

Analysis: The limitation question turned on whether the proceedings before the Board for Industrial and Financial Reconstruction and the order passed therein had been placed before the Tribunal and considered while computing the period under Article 137 of the Limitation Act, 1963. Since the record before the Court did not clearly show that the Tribunal had taken that material into account, and since such proceedings could materially affect the computation of limitation because of the statutory embargo under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, the finding on limitation could not be sustained without a fresh look at the BIFR material, if available on record.

Conclusion: The limitation issue was not finally affirmed on the existing record, and the matter was required to be reconsidered by the Tribunal after taking into account the BIFR order, if placed on record.

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