Haabia Resoureces Private Limited Vs Vidyut Metallices Prive Limited (NCLT Mumbai)
NCLT Mumbai held that application u/s. 9 of the Insolvency and Bankruptcy Code [IBC] after three years of MSME Council Awards is beyond limitation as per Article 137 of the Limitation Act. Accordingly, application dismissed as barred by limitation.
Facts- This application was filed on 23.03.2022 u/s. 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (AAA Rules) by Haabia Resources Private Limited, the Operational Creditor (OC), through Mr. Nadendla Venkata Ratnam, Director of the OC, authorised vide Board Resolution dated 13.02.2020, for initiating Corporate Insolvency Resolution Process (CIRP) in respect of Vidyut Metallics Private Limited (VMPL), the Corporate Debtor (CD).
The total amount of default alleged is Rs.8,40,22,672/- as on 31.01.2020. It is based on default in the payment of two arbitration awards dated 26.02.2011, made in OC’s favour against the CD by the Andhra Pradesh State Micro and Small Enterprises Facilitation Council, Hyderabad (MSME Council Awards).
Conclusion- Held that the MSME Council Awards had attained finality pursuant to the withdrawal of CD’s appeal from the Hon’ble Supreme Court. The MSME Council Awards were passed in favor of the CD on 23.02.2011. However, the present Application was filed by it on 23.03.2022, which is much beyond the limitation period of three years from the date of default as per Article 137 of the Limitation Act. It is well established that proceedings under the IBC are not in the nature of execution of decrees. Hence, we are unable to accept the contention of the OC that Article 136 of the Schedule to the Limitation Act is applicable in the present matter, which is filed under Section 9 of the IBC.
