2025 (12) TMI 458

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....icial) These two appeals arise out of two independent Orders passed by the Adjudicating Authority (NCLT, Court -2, Ahmedabad) in two separate applications which the appellant herein has filed under Sec. 95 of IBC against the personal guarantors. Needless to mention, both these applications were dismissed on the point of limitation. 2.1 The relevant facts necessary for the current purpose are identical in both the cases. Event Date Date of default 10 October 2017 Ordinary limitation of 3 years 10 October 2020 Issuance of Demand Notice to the Personal Guarantor 03 January 2022 Date of filing of Company Petition 17 August 2022 Date of registration of Company Petition 17 August 2022 In ordinary cours....

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.... Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings." 2.2 The Adjudicating Authority had taken note of this Order but has held that after 28.02.2022 only 90 days would be available for the appellant to keep the cause of action alive for instituting a petition under the IBC but it had instituted the case only on 17.08.2022 well beyond 90 days. If that is so, the appellant should have filed it on or before 30th May, 2024. Since the appellant has filed it only on 17.08.2022, the bar of limitation would interven....

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....clear that while extension of prescribed period in relation to an appeal or certain applications has been envisaged under Section 5, the exclusion of time has been provided in the provisions like Sections 12 to 15 thereof. When a particular period is to be excluded in relation to any suit or proceeding, essentially the reason is that such a period is accepted by law to be the one not referable to any indolence on the part of the litigant, but being relatable to either the force of circumstances or other requirements of law (like that of mandatory two months' notice for a suit against the Government [Vide Section 15 of the Limitation Act, 1963.]). The excluded period, as a necessary consequence, results in enlargement of time, over and a....