Applicability of Limitation Act to Insolvency & Bankruptcy Code, 2016

The Limitation Act, 1963 (“Limitation Act”) is a law of repose, peace and justice which bars the remedy after lapse of a particular period by way of public policy and expediency without extinguishing the right in certain cases. This is based on a public policy principle that a claimant who has slept over its claim cannot seek to enforce the said claim/rights at a later stage, as it will prejudice the right of the other party. Therefore, when the Insolvency and Bankruptcy Code, 2016 (“Code”) is silent on the applicability of the Limitation Act on the proceedings brought under the Code it poses some interesting issues: which have been discussed in the recent past in a number of cases before the National Company Law Tribunal (“NCLT”) and National Company Law Appellate Tribunal (“NCLAT”). This article aims to highlight some of the said important judicial pronouncements.

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