Limitation for insolvency applications based on recovery certificates remains three years, not 12 years under general execution rules.

Applications under Section 95 of the Insolvency and Bankruptcy Code based on a recovery certificate are treated as governed by Article 137 of the Limitation Act, giving a three-year limitation period. A recovery certificate may create a fresh cause of action, but it does not extend the period for initiating insolvency proceedings to 12 years under Article 136. The article also notes that acknowledgment after expiry of limitation does not revive a stale claim. On that basis, the Section 95 application is described as time-barred and the 12-year limitation argument as rejected.

---

---

Issues: Whether the application under Section 95 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation, and whether a recovery certificate could extend the limitation period to 12 years for initiating insolvency proceedings.

Analysis: The limitation question was examined with reference to the Supreme Court decisions on applications under the Insolvency and Bankruptcy Code. The governing principle applied was that proceedings under the Code for recovery based on a recovery certificate are governed by Article 137 of the Limitation Act, 1963, which prescribes a three-year period. A recovery certificate may give rise to a fresh cause of action, but that does not convert the limitation for insolvency proceedings into 12 years under Article 136 of the Limitation Act, 1963. The authorities relied upon by the appellant were read as affirming that an application under the Code must still be filed within three years from the relevant date, and that acknowledgment after expiry of limitation cannot revive a stale claim.

Conclusion: The application under Section 95 was time-barred and the plea that a 12-year limitation applied was rejected.

---