Appeal Dismissed: NCLT Bangalore Bench's Rejection of Petition Under I&B Code Section 9 Upheld Due to Limitation Bar. The appeal against the NCLT, Bangalore Bench's dismissal of the Company Petition under Section 9 of the I&B Code, 2016, was rejected. The petition, filed ...
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Appeal Dismissed: NCLT Bangalore Bench's Rejection of Petition Under I&B Code Section 9 Upheld Due to Limitation Bar.
The appeal against the NCLT, Bangalore Bench's dismissal of the Company Petition under Section 9 of the I&B Code, 2016, was rejected. The petition, filed by the Appellant on 17.04.2023, was deemed barred by limitation, as the default occurred on 07.09.2019 and the limitation period ended on 06.09.2022. The Hon'ble Apex Court's exclusion of the period from 15.03.2020 to 28.02.2022 did not extend the limitation period to 22.08.2024 as claimed by the Appellant. The appeal lacked merit, and the dismissal was upheld.
Issues: Challenge to Impugned Order based on limitation period for initiation of CIRP proceedings under I&B Code, 2016.
Analysis: The Appellant challenged the Impugned Order rendered by the NCLT, Bangalore Bench in CP(IB) No. 100/BB/2023 under Section 9 of I&B Code, 2016, against the Respondent/Corporate Debtor. The Company Petition was dismissed by the Adjudicating Authority as barred by limitation. The Appellant filed the application on 17.04.2023, claiming a default by the Corporate Debtor on 07.09.2019, amounting to Rs. 2,43,48,930. The dismissal was solely based on the ground of limitation.
The key facts include the date of default on 07.09.2019, and the period of limitation under Section 238A of I&B Code being 3 years from the date of default, ending on 06.09.2022. The Hon'ble Apex Court, due to Covid-19, excluded the period from 15.03.2020 till 28.02.2022 for limitation purposes. The Appellant argued that the limitation period would extend to 22.08.2024, deducting 190 days from the total period of 1095 days.
The Hon'ble Apex Court's judgment excluded the period from 15.03.2020 till 28.02.2022 for limitation purposes, with a balance period of 90 days from 01.03.2022. The Appellant contended that the limitation period would extend to 22.08.2024. However, as the actual balance period was 190 days, exceeding 90 days, the end date of the limitation period remained 06.09.2022, not 22.08.2024 as claimed by the Appellant.
The Company Petition was e-filed on 10.04.2023 and physically filed on 17.04.2023, well beyond the end date of the limitation period as per the Hon'ble Apex Court's judgment. The Appellant's attempt to compute the end date by adding 905 days from 01.03.2022 was deemed misconceived. The rejection of the Company Petition by the Adjudicating Authority was upheld as it was filed much beyond 06.09.2022, the end date of the limitation period.
The dismissal of the Company Appeal was deemed appropriate as the I&B Code proceedings must adhere strictly to the limitation period to achieve the Act's objective. The proceedings under the I&B Code are time-bound, and the limitation period cannot be stretched to suit the appellant's expectations. The Appeal lacked merit and was dismissed accordingly.
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