Nextgen Procon Pvt. Ltd. Vs M.R.A Associates Pvt. Ltd. (NCLAT Delhi)
NCLAT Delhi held that application for intervention filed under section 59(7) of the Insolvency and Bankruptcy Code, 2016 [IBC] beyond the period of limitation of three years is time barred.
Facts- This appeal is filed by the Corporate Person through its liquidator to challenge the order dated 06.08.2024 passed by the NCLT, New Delhi by which an application filed by the Respondent under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 bearing CA No. 672 of 2019 for intervention in the proceedings initiated under Section 59(7) of the code has been allowed.
Notably, the appellant has argued that the application qua the claim made by the respondent on 28.08.2019 on the basis of the invoice dated 18.09.2015 was hopelessly time barred being beyond the period of three years as provided under Article 137 of the Limitation Act, 1963.
Conclusion- It is needless to mention that limitation for an application which is not prescribed in the limitation act would fall within the purview of Article 137 of the Act which prescribe a period of three years.
Held that in the present case if the limitation is counted from 18.09.2015 when the invoice was raised it would expire on 18.09.2018 and if it is to be counted from 18.07.2016 even then the same expired on 17.07.2019 whereas the application bearing CA No. 672 of 2019 raising the claim by way of invoice was filed on 28.08.2019 precisely after the expiry of period of limitation of three years. Therefore, in our considered opinion, the Tribunal has committed an error in entertaining the application for intervention filed by the Respondent despite the fact that it was beyond the period of limitation of three years.
