In Brief
A financial creditor (Invent Asset Securitisation and Reconstruction Pvt. Ltd) sought to initiate corporate insolvency proceedings against Girnar Fibres Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016 for a debt that had defaulted in 2002. The Supreme Court upheld the lower tribunals' dismissal, holding that the insolvency application was barred by the law of limitations. The Court reaffirmed that the Code is designed to rehabilitate corporate debtors, not serve as a debt recovery mechanism, and cannot be used to circumvent limitation laws."
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