In Brief
A financial creditor sought to initiate insolvency proceedings against two corporate debtors over three years after loan accounts were classified as non-performing in December 2016. The creditor argued the limitation period was extended by the Resolution Professional's admission of the debt during an earlier insolvency process. The Supreme Court held that the three-year limitation period runs from the date of default and cannot be extended by a Resolution Professional's administrative act of recording claims. Since the application was filed in September 2024—well after the extended limitation period expired in August 2024—it was time-barred. The Court rejected the creditor's argument that the admission of claims by the Resolution Professional amounted to an acknowledgment of liability under the Limitation Act.
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