In Brief
The Supreme Court held that the Limitation Act, 1963 applies to applications under Sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 from the Code's inception (December 1, 2016) via Section 433 of the Companies Act, 2013. The expression "debt due" in the Code refers only to debts not barred by limitation. Section 238A (inserted June 6, 2018), clarifying this position, is retrospective. An application for corporate insolvency cannot revive a time-barred debt. Article 137 of the Limitation Act (three-year period) applies, subject to condonation under Section 5. The appeals were remanded to the NCLAT for fresh decision in light of this judgment.
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