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Supreme Court of India 2021-09-30 dismissed

Rajendra Narottamdas Sheth & Anr vs Chandra Prakash Jain & Anr

Bench: 3 — L. Nageswara Rao, B. R. Gavai, B. V. Nagarathna

In Brief

Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code against R.K. Infratel Ltd. through its authorized power of attorney holder. The corporate debtor contended the application was unmaintainable because not filed by an authorized representative and was time-barred. The Court held that a power of attorney conferring general authority to conduct all bank business and legal proceedings authorizes filing under Section 7. On limitation, the Court held the financial creditor must prima facie prove non-time-barred debt, but the Adjudicating Authority may consider corporate debtor's records showing acknowledgement. Section 18 of the Limitation Act applies, creating fresh limitation from written acknowledgements made within the initial three-year period. Appeal dismissed.

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Insolvency and Bankruptcy Code Limitation Act Corporate Insolvency Resolution Process Financial Creditor Power of Attorney Default and Debt Recovery

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