Limitation for insolvency applications: section 4 relief and exclusion of the section 8 notice period were both rejected.

An application under section 9 of the Insolvency and Bankruptcy Code was held governed by Article 137 of the Limitation Act, so it had to be filed within three years. Section 4 could apply only if the prescribed period ended on a day when the tribunal was closed; on the facts, the filing was made on 10.10.2019 and not on the claimed date, so that benefit was unavailable and the application remained time-barred. The 10-day notice period under section 8 could not be excluded under section 15(2) because a section 9 proceeding is an application, not a suit, and the exclusion provision did not apply.

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Issues: (i) Whether the application under section 9 of the Insolvency and Bankruptcy Code, 2016 was filed within limitation by invoking section 4 of the Limitation Act, 1963 on the ground that the tribunal remained closed on the last date; (ii) Whether the 10-day notice period under section 8 of the Insolvency and Bankruptcy Code, 2016 could be excluded while computing limitation by invoking section 15(2) of the Limitation Act, 1963.

Issue (i): Whether the application under section 9 of the Insolvency and Bankruptcy Code, 2016 was filed within limitation by invoking section 4 of the Limitation Act, 1963 on the ground that the tribunal remained closed on the last date.

Analysis: The limitation period for an application under section 9 is governed by Article 137 of the Limitation Act, 1963. Even proceeding on the asserted acknowledgment date, the application had to be filed within three years. Section 4 of the Limitation Act, 1963 applies only where the prescribed period expires on a day when the court is closed, in which event filing on reopening is permissible. On the factual material relied upon, the filing was found to have been made on 10.10.2019 and not on 09.10.2019, and therefore it could not take the benefit of section 4.

Conclusion: The plea of limitation based on section 4 failed, and the filing was held to be time-barred.

Issue (ii): Whether the 10-day notice period under section 8 of the Insolvency and Bankruptcy Code, 2016 could be excluded while computing limitation by invoking section 15(2) of the Limitation Act, 1963.

Analysis: Section 15(2) of the Limitation Act, 1963 applies to suits in which notice is required, whereas the proceeding under section 9 of the Insolvency and Bankruptcy Code, 2016 is an application and not a suit. The statutory scheme of sections 8 and 9 of the Code only requires the operational creditor to wait for expiry of the 10-day notice period before filing the application; it does not create any basis for excluding that period from the three-year limitation under Article 137. The authorities relied upon by the appellant were held inapplicable.

Conclusion: The 10-day notice period could not be excluded for computing limitation, and the contention was rejected.

Final Conclusion: The impugned order dismissing the section 9 application as time-barred was upheld, and the appeal was dismissed.

Ratio Decidendi: An application under section 9 of the Insolvency and Bankruptcy Code, 2016 is governed by Article 137 of the Limitation Act, 1963, section 4 applies only when the last day for filing falls on a court-closed day, and the notice period under section 8 of the Code cannot be excluded under section 15(2) because the proceeding is not a suit.

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