9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2025 (1) TMI 1101 - SCH - IBCDismissal of application filed by the respondent-Bank under Section 7 of the Insolvency and Bankruptcy Code 2016 on the ground of bar of limitation - HELD THAT - It is found that the NCLAT has relied upon a letter dated 25th October 2019 for coming to the conclusion that Section 25(3) of the Indian Contract Act 1872 will apply and in view of the promise contained in the same letter the petition under Section 7 of the IB Code was within the limitation - However the admitted position is that the letter dated 25th October 2019 was not produced by the respondent before the NCLT and it was produced for the first time in the appeal preferred by the respondent before the NCLAT. The finding on the issue of bar of limitation has been upset by the NCLAT mainly relying upon the letter dated 25 th October 2019. The appeal is partly allowed by leaving open all questions for consideration of the NCLT.
Supreme Court Judgment Summary:
In the case before the Supreme Court, the appeal concerns an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IB Code") filed by the respondent-Bank against the appellant, which was initially dismissed by the National Company Law Tribunal ("NCLT") due to a "bar of limitation." The National Company Law Appellate Tribunal ("NCLAT") overturned this decision, finding the application was within the limitation period, based on a letter dated 25th October 2019. The NCLAT concluded that Section 25(3) of the Indian Contract Act, 1872 applied, allowing the application to be considered timely. However, the Supreme Court noted that the letter relied upon by the NCLAT was not presented before the NCLT, thus the appellant had no opportunity to address it at that stage. Consequently, the Supreme Court modified the NCLAT's order of remand, permitting the respondent to present the letter to the NCLT. The issue of limitation, as concluded by the NCLAT, remains open for the NCLT to reconsider in accordance with the law. The appeal is partly allowed, leaving all questions open for the NCLT's determination.
|
