In Brief
A financial creditor sought to initiate Corporate Insolvency Resolution Process (CIRP) against a corporate debtor under Section 7 of the Insolvency and Bankruptcy Code, 2016, specifying the default date as 08.07.2011 but filing the application in March 2018—nearly seven years later. The Supreme Court held that applications under Section 7 are subject to a three-year limitation period under Article 137 of the Limitation Act, 1963, running from the date of default. Since default occurred more than three years prior to filing, the application was barred by limitation. The Court rejected arguments that the Code's commencement date reset the period, that mortgage limitation periods apply, or that subsequent balance sheet entries could revive the claim. All proceedings under the barred application were annulled.
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