In Brief
This appeal examined two key issues under the Insolvency and Bankruptcy Code, 2016: whether a bank's power of attorney holder can file an insolvency application, and whether an application filed beyond the three-year limitation period can be entertained. The Supreme Court held that a power of attorney holder with general authorization to conduct legal proceedings is competent to file such applications. On limitation, the Court held that Section 18 of the Limitation Act applies to insolvency applications; where acknowledgement of debt occurs within the initial three years, a fresh limitation period commences, allowing late applications to be entertained if filed within the extended period. The Court clarified that while the financial creditor bears primary responsibility to prove timely filing, the Adjudicating Authority may examine evidence placed on record by the corporate debtor. The appeal was dismissed.
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