Case Note & Summary
The appeal arose from an order dated 17.09.2026, where the Learned Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP) against the Appellant, Santosh Sharma, a suspended director of GEPDEC Infratech Limited, based on a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Appellant challenged the order, arguing that the petition was time barred since the last default was on 15.09.2019, and the petition was filed on 04.04.2025, exceeding the limitation period. The Appellant also contended that the Learned Adjudicating Authority improperly relied on a communication dated 07.12.2021 as an acknowledgment under Section 18 of the Indian Limitation Act, 1963, which should not have been considered for extending the limitation period. The Respondent, an Operational Creditor, argued that the limitation plea was not raised earlier and expressed no objection to remanding the case, provided it was time-bound. The Tribunal noted that the Learned Adjudicating Authority had not considered the Supreme Court's ruling on the matter and agreed with the Appellant's submissions regarding the acknowledgment issue. Consequently, the Tribunal set aside the impugned order and remanded the case to the Learned Adjudicating Authority for a fresh decision on the limitation question, instructing that the matter be resolved within 30 days of receiving the order's certified copy. The appeal was disposed of without costs, and the parties were directed to appear before the Learned Adjudicating Authority on 12.10.2026.
Headnote
A) Insolvency Law - Limitation Period - Time Barred Petition - Insolvency and Bankruptcy Code, 2016, Section 9 - The Appellant contended that the petition was filed beyond the limitation period as the last default occurred on 15.09.2019, and the petition was filed on 04.04.2025. The court agreed with the Appellant's submission regarding the acknowledgment of debt and remanded the matter for a fresh decision on limitation (Paras 1-4).
Issue of Consideration
Whether the petition under Section 9 of the Code was time barred and the implications of acknowledgment under Section 18 of the Indian Limitation Act, 1963.
Final Decision
The Tribunal set aside the impugned order dated 17.09.2026 and remanded the matter to the Learned Adjudicating Authority for a fresh decision on the limitation issue, directing that it be resolved within 30 days of receiving the certified copy of the order.
Law Points
- Limitation period
- acknowledgment of debt
- remand for fresh decision
- time-bound process
