Insolvency rejection upheld, with liberty to seek civil recovery and delay condonation under the Limitation Act.

The Supreme Court declined to interfere with an order rejecting proceedings under the Insolvency and Bankruptcy Code, 2016, and dismissed the appeal. It preserved the appellant's liberty to pursue recovery of the claimed amount by filing a civil suit within the stipulated period. If such a suit is filed, the Trial Court may consider any application for condonation of delay under the Limitation Act, 1963. The Court also clarified that observations made in the impugned insolvency order will not govern the suit, which must be decided independently on the evidence on record.

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Issues: Whether the appeal called for interference with the impugned order rejecting the proceedings under the Insolvency and Bankruptcy Code, 2016, and whether the appellant was entitled to any further relief.

Analysis: The appeal was considered on the limited question of interference with the impugned order. The Court found no reason to interfere and dismissed the appeal. Liberty was reserved to the appellant to pursue a suit for recovery of money within the stipulated period. It was also clarified that if such suit is filed, the Trial Court may consider any application for condonation of delay in accordance with the Limitation Act, 1963, and that observations in the impugned order made for rejecting the proceedings under the Insolvency and Bankruptcy Code, 2016 would not affect adjudication of the suit, which must rest on the evidence on record.

Conclusion: The appeal failed, while the appellant was left at liberty to seek recovery through a civil suit and seek condonation of delay if required.

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