2026 (1) TMI 159

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....el for the Appellant. 2. This appeal has been filed against the order passed by Adjudicating Authority dated 21.03.2025 by which Section 9 application filed by the appellant has been rejected as barred by time. Adjudicating Authority in paragraph 5.3 has noted the facts that which states as follows:- "5.3 As regards the issue of limitation with respect to C.P. (IB) No. 1090/MB/2022, upon perusal of available documents, we find that the OC's claims are based on the MSME Council Awards dated 26.02.2011. The said Awards were challenged by the CD before the Ld. City Civil Court, Hyderabad by filing of Arbitration O.P. Nos. 1101/2011 & 1102/2011, which were dismissed vide orders dated 05.03.2012. Later, the CD appealed against th....

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....y hit by Section 238A of the IBC read with Article 137 of the Limitation Act. Thus, we hold that the present Application is hopelessly barred by limitation." 3. Ld. Counsel for the appellant challenging the order submits that even though arbitral counsel has gave an award which became final on 11.03.2013 but Section 8 notice was given by the appellant on 01.12.2019 and the Section 9 application was filed on 03.03.2020 and hence it was well within time. It is submitted that limitation needs to be computed after expiry of 10 days of giving notice under Section 8 when amount is not paid and default is committed. He submits that present is a case where arbitral award has computed the amount of entitled. 4. We have considered the submissio....

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.... notice or invoice in relation to such dispute; (b) the [payment] of unpaid operational debt- (i) by sending an attested copy of the record of electronic transfer of the unpaid amount from the bank account of the corporate debtor; or (ii) by sending an attested copy of record that the operational creditor has encashed a cheque issued by the corporate debtor." "9. Application for initiation of corporate insolvency resolution process by operational creditor- (1) After the expiry of the period of ten days from the date of delivery of the notice or invoice demanding payment under sub-section (1) of section 8, if the operational creditor does not receive payment from the corporate debtor or notice of the dispu....

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....thin fourteen days of the receipt of the application under sub-section (2), by an order- (i) admit the application and communicate such decision to the operational creditor and the corporate debtor if,- (a) the application made under sub-section (2) is complete; (b) there is no [payment] of the unpaid operational debt; (c) the invoice or notice for payment to the corporate debtor has been delivered by the operational creditor; (d) no notice of dispute^J6 has been received by the operational creditor or there is no record of dispute in the information utility; and (e) there is no disciplinary proceeding pending^4 against any resolution professional proposed under sub-section (4), if any. ....