Period From 15.03.2020 To 28.02.2022 Shall Stand Excluded As Per SC Judgment In 'Re:Cognizance For Extension Of Limitation': NCLAT

The NCLAT New Delhi bench of Justice Yogesh Khanna (Judicial Member) and Mr. Ajai Das Mehrotra (Technical Member) has held that period from 15.03.2020 to 28.02.2022 shall stand excluded in light of the Supreme Court judgment in In Re: Cognizance for Extension of Limitation for the purpose of calculating the limitation period while filing an application under section 9 of the code. Brief Facts This appeal has been filed against an order passed by an Adjudicating Authority by which section 9 application was dismissed on the ground that the same was barred by limitation. The appellant submitted that the Ld. Adjudicating Authority misinterpreted the Judgement passed by the Hon'ble Supreme Court in “In Re: Cognizance for Extension of Limitation” dated 10.01.2022. It was argued that the petition filed by the appellant is within limitation period and date of default was November 1, 2019 which in the application of usual limitation period would have expired on November 1. 2022. However, after the Supreme Court judgment in In Re: Cognizance for Extension of Limitation the period from 15.03.2020 to 28.02.2022 shall stand excluded for the purpose of limitation. Observations: The tribunal noted that the limitation period for filing a Section 9 Petition under IBC is 3 years or 36 months. Now if the period from 15.03.2020 to 28.02.2022 is excluded then 23 months and 15 days stands excluded, and if the said 23 months and 15 days are excluded then total number of months remaining as on 28.02.2022 for the limitation to expire in the present case would be 31 months and 16 days which consequently would expire on 17.10.2024 and as Section 9 Petition was filed on 31.08.2023 it is well within the limitation period. The tribunal noted that the case of the appellant falls squarely under para I of the judgment by which the period from 15.03.2020 to 28.02.2022 for the purpose of calculating limitation period shall stand excluded. Furthermore, in light of para IV of the jugdment, the period of limitation would also be extended. Accordingly, the present appeal was allowed and section 9 application was restored. Case Title: Indospirit Distribution Limited Vs Kristal Spirits India Pvt Ltd Case Number: COMPANY APPEAL (AT)(Ins) No.503 of 2024 Judgment Date: 09/01/2025 Click Here To Read/Download The Order

Period From 15.03.2020 To 28.02.2022 Shall Stand Excluded As Per SC Judgment In 'Re:Cognizance For Extension Of Limitation': NCLAT

Mohd Malik Chauhan

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