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TMI Blog2020 (11) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... n four years after the default occurred. The time, for purposes of reckoning limitation in terms of Article 137 of the Limitation Act, would commence from the date of default i.e. 10th June, 2014 which would neither be shifted not extended once a default has occurred. On the basis of such default the Financial Creditor, in the instant case, has approached Debts Recovery Tribunal on 20th October, 2015. In the given circumstances, it cannot lie in the mouth of the Appellant that the date of default gets extended on account of acknowledgment made in the OTS proposal emanating from the Corporate Debtor. There cannot be two defaults in respect of the same debt, one for the purpose of claim filed before the Debts Recovery Tribunal and the other f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orate Debtor in the form of revival letter extending the period of limitation which is said to have been overlooked by the Adjudicating Authority while passing the impugned order. 2. Shri Arun Kathpalia, Senior Advocate representing the Appellant has referred to Annexure A-14 to appeal paper book (page 687) which is a One Time Settlement proposal stated to be emanating from the Corporate Debtor. It is dated 13th June, 2015. In terms of this proposal, the Corporate Debtor, while expressing its inability to revive the company, proposed to raise funds from various investors for taking over of its business subject to settlement of its liabilities towards the lenders/ financial creditors. This, according to Shri Arun Kathpalia, Senior Advocat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atory in nature. The Hon ble Apex Court has, in a catena of authorities held that the applications under Sections 7 and 9 of the I B Code not being a suit are governed under the residuary provision engrafted in Article 137 of the Limitation Act which prescribes a period of three years as limitation. In B.K. Educational Services Private Limited (Supra), it was held that the limitation period for application under Section 7 of the I B Code is three years as provided by Article 137 of the Limitation Act which commences from the date of default and is extendable only by application of Section 5 of the Limitation Act, if a case for condonation of delay is made out. In Jignesh Shah Anr. Vs. Union of India Anr. (2019) 10 Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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