Case Law Details
Dena Bank (now Bank of Baroda) Vs. C. Shivakumar Reddy and Anr. (Supreme Court of India)
No bar to amendment of petition u/s 7 of IBC until final order; judgment and/or decree for money in favour of the financial creditor would give rise to a fresh cause of action
[Dena Bank v. C. Shivakumar Reddy, Civil Appeal No. 1650 of 2020, decided on 4-8-2021]
The main question involved in before the Hon’ble Supreme Court of India was as-
“Whether a petition under Section 7 IBC would be barred by limitation, on the sole ground that it had been filed beyond a period of three years from the date of declaration of the loan account of the Corporate Debtor as NPA, even though the Corporate Debtor might subsequently have acknowledged its liability to the appellant Bank, within a period of three years prior to the date of filing of the Section 7 petition, by making a proposal for a one time settlement, or by acknowledging the debt in its statutory balance sheets and books of accounts.
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