In Brief
An asset reconstruction company that acquired rights to a defaulted bank loan sought to initiate corporate insolvency proceedings against the debtor. The Supreme Court dismissed the appeal, holding that the application was barred by limitation under Article 137 of the Limitation Act. Since the default occurred in 1993—over three years before the 2018 filing—the three-year limitation period had expired. The Court rejected arguments that a 2017 balance sheet and 2019 settlement letter constituted fresh acknowledgements of liability, as both documents expressly denied liability. The Court affirmed that the IBC is not a substitute recovery forum when alternative remedies, such as pending recovery tribunal proceedings, remain available.
The lawyer headnote and full judgment text are available to registered users.