Limitation for Section 9 insolvency claims runs from accrual of the right to sue, and a Section 8 notice does not revive time-barred debt.

A Section 9 insolvency application under the Insolvency and Bankruptcy Code is governed by Article 137 of the Limitation Act through Section 238A, so the three-year period runs from when the right to sue accrues. Where the operational debt arose from an award that had attained finality and remained unpaid, limitation began when the award became operative. A Section 8 demand notice does not create a fresh limitation period; its ten-day wait is only a precondition to filing under Section 9. The insolvency application was therefore barred by limitation.

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Issues: Whether the Section 9 application under the Insolvency and Bankruptcy Code, 2016 was barred by limitation, and whether issuance of a demand notice under Section 8 could give rise to a fresh period of limitation.

Analysis: The operational debt arose from an award that had attained finality when the challenge before the Supreme Court was withdrawn. The cause of action for limitation therefore arose when the award became operative and remained unpaid. Proceedings under the Insolvency and Bankruptcy Code are governed by Article 137 of the Limitation Act, 1963 through Section 238A of the Insolvency and Bankruptcy Code, 2016, and the three-year period runs from the point when the right to sue accrues. The ten-day period after a demand notice under Section 8 is only a condition for moving an application under Section 9 and does not restart limitation for a claim that had already become time-barred.

Conclusion: The Section 9 application was rightly held to be barred by limitation, and the challenge to that finding failed.

Final Conclusion: The rejection of the insolvency application on limitation grounds was sustained, leaving the appellant without relief in the appeal.

Ratio Decidendi: A Section 9 proceeding under the Insolvency and Bankruptcy Code, 2016 is governed by Article 137 of the Limitation Act, 1963, and a demand notice under Section 8 does not revive or extend a limitation period that has already expired.

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