IDBI Bank Ltd Vs Hemangi Patel (NCLAT Delhi)
NCLAT Delhi held that rejection of application under section 95 of the Insolvency and Bankruptcy Code justifiable since application filed after expiry of period of three years is barred by limitation. Accordingly, appeal dismissed.
Facts- The IDBI Bank extended credit facilities to corporate debtor – Great Logistic and Parking Services Pvt. Ltd., the respondent herein stood personal guarantor and executed a personal guarantee in favour of the creditor on 28.10.2010. The corporate debtor had defaulted in repayment of the cash credit facilities on 31.03.2016 leading the classification of the account as NPA.
These two appeals have been filed by the IDBI Bank, challenging the two identical orders passed on 05.05.2025 by the National Company Law Tribunal rejecting Section 95 application filed by the IDBI Bank against the respondent, the personal guarantor herein.
Conclusion- Hon’ble Supreme Court in the matter of ‘B.K. Educational Services Pvt. Ltd.’ Vs. ‘Parag Gupta & Associates’, reported in [(2019) 11 SCC 633], where Article 137 of the Limitation Act was held to be applicable and limitation as 3 years.
Held that the adjudicating authority in the impugned order come to the conclusion that Section 95 application filed by the IDBI Bank was filed after expiry of three years period of limitation even after giving the benefit of judgment of the Hon’ble Supreme Court in Suo Moto WP (Civil) No. 3 of 2022 in ‘Re: Cognizance for Extension of Limitation’. We do not find any error in the order of the adjudicating authority rejecting Section 95 application filed by the appellant as barred by time. There is no merit in the appeals. Both the appeals are dismissed.
