9911796707
TMI BlogLaw of Limitation - Insolvency ProceedingsX X X X Extracts X X X X X X X X Extracts X X X X ..... IL") on 20th February, 2015. Owing to the purported failure of MIL to perform its obligations under the agreement, NDMC terminated the agreement. On 7th June, 2016, MIL initiated arbitration proceedings under the Arbitration and Conciliation Act, 1996 by issuing a notice of commencement of arbitration. Before the arbitration proceedings could commence, on 14th May, 2018, MIL was admitted into ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the notice of commencement of arbitration, being on or before 6th June, 2019, when in fact the application was filed only on 28.11.2019. NDMC contended, even if limitation is not raised by a party, the court is bound to consider the issue of Limitation as per the law laid down in Indian Limitation Act, 1963. NDMC argued that the language of Section 60(6) of the Insolvency and Bankruptcy Cod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 60(6) would have to be read in its plain meaning and not as being in contradiction of Section 25(2)(b). The apex court emphasised that the period of insolvency for a company under the IBC was a period of turbulence where the management and control of a company transfers from an Interim Resolution Professional (IRP) to a Resolution Professional (RP) all the while being under control of a Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r interpreted in a manner that would render the provision as meaningless. Conclusion: This judgment is an appreciable one since it solidifies the position of law that the period of limitation, which otherwise never halts, is expressly expected to halt during the period of insolvency resolution under the IBC. A company, once out of insolvency, would be confronted with the continuation of the per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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