In Brief
Radha Exports challenged an insolvency petition filed by K.P. Jayaram under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority rejected the petition as barred by limitation, but the Appellate Authority reversed this. The Supreme Court held that companies may raise alternative defences, including both denying debt's existence and pleading limitation. The Court affirmed that once a debt is barred by limitation, it cannot be the basis for initiating insolvency proceedings. The Adjudicating Authority's decision was correct, and the Appellate Authority's reversal was erroneous.
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