Sarang Kumar Wadhawan Vs Unity Small Finance Bank Ltd. (NCLAT Delhi)
NCLAT Delhi held that initiation of Corporate Insolvency Resolution Process by admitting application u/s. 7 justifiable since application duly filed within 3 years of ‘Promise to Pay’ under section 25(3) of the Indian Contract Act, 1872. Accordingly, appeal dismissed.
Facts- The present Appeal is being preferred by the Appellant, Mr. Sarang Kumar Wadhawan, in the capacity of a shareholder of the Corporate Debtor, under Section 61 (1) of the Insolvency & Bankruptcy Code, 2016 against the Impugned Order dated 15.02.2023, passed by the National Company Law Tribunal, Mumbai (Bench – V) in Company Petition filed by the Respondent No.1 under Section 7 of the IB Code for initiation of Corporate Insolvency Resolution Process against Privilege Power Infrastructure Limited.
Conclusion- Held that the Application under Section 7 was filed within limitation having been filed within 3 years of “Promise to pay” under Section 25(3) of the Indian Contract Act, 1872. We also find that the petition is filed within time contemplating the extension of limitation under Section 18 and 19 of the Limitation Act, 1963. We also find that the Petition is within the 1 (one) year of finding of fraud and therefore, permissible under Section 17 of the Limitation Act, 1963.
