Case Note & Summary
The appeal arose from an order dated 08.10.2024 passed by the National Company Law Tribunal, Mumbai, which dismissed the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the Appellant, M/s Vardhman Cables and Conductors, on the grounds of limitation. The Appellant contended that the Adjudicating Authority incorrectly treated 02.12.2018 as the date of default for the entire claim, failing to consider that the claim arose from 13 separate invoices issued between 02.10.2018 and 09.06.2020. The Appellant argued that the dismissal was based on a cryptic order that did not adequately address the limitation issue. The Respondent, M/s Elecon Energy Solutions Pvt. Ltd., maintained that the application was rightly dismissed as it was filed after the limitation period had expired. The Tribunal analyzed the limitation period, noting that the Adjudicating Authority had not properly accounted for the exclusion of time due to the COVID-19 pandemic as directed by the Supreme Court. The Tribunal concluded that the balance period of limitation should have been extended, allowing the application to be filed within the permissible time frame. Consequently, the Tribunal set aside the impugned order, allowed the appeal, and restored the application for adjudication on merits.
Headnote
A) Insolvency Law - Limitation Period - Calculation of Limitation - Insolvency and Bankruptcy Code, 2016, Section 9 - The Adjudicating Authority dismissed the application as barred by limitation, considering the date of default as 02.12.2018. The Tribunal found that the exclusion of time due to COVID-19 was not properly accounted for, leading to the conclusion that the application was indeed within the limitation period. Held that the impugned order was erroneous and the application should be restored for adjudication on merits (Paras 28-41).
Issue of Consideration
Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code was within the period of limitation.
Final Decision
The Tribunal set aside the impugned order, allowed the appeal, and restored the application for adjudication on merits, directing parties to appear before the Adjudicating Authority on 2026-10-14.
Law Points
- Insolvency and Bankruptcy
- Limitation Period
- Corporate Insolvency Resolution Process
- Exclusion of Time
- Operational Debt
