Vashdeo R Bhojwani vs Abhyudaya Co-Operative Bank Ltd & Anr.

Court

Supreme Court of India

Date

2 September 2019

Case No.

Civil Appeal No. 11020 of 2018

Result

Allowed

Bench

R.F. Nariman, Surya Kant

Citation

[2019] 12 S.C.R. 75 : 2019 INSC 984

Headnote

Limitation Act, 1963:

s.23 and Article 137 – Applicability of the Limitation Act – To the application u/s.7 of Insolvency and Bankruptcy Code, 2016 – It was held in the impugned order that as the default continued, no period of limitation would be attracted – Appeal to Supreme Court – Held: Limitation Act is applicable to the applications filed u/s.7 – Petition u/s. 7 filed after 3 years from the date of default, would be barred u/Art. 137 of the Limitation Act – The limitation would not be saved by virtue of s.23 of the Limitation Act – Appeal allowed – Insolvency and Bankruptcy Code, 2016 – s.7.

B.K. Educational Services Private Limited vs. Parag Gupta and Associates, 2018 (14) SCALE 482;

Balkrishna Savalram Pujari and Others vs. Shree Dnyaneshwar Maharaj Sansthan & Others, [1959]

Suppl. 2 S.C.R. 476 – relied on.

The Judgment of the Court was delivered by R. F. NARIMAN, J. 1. In the facts of the present case, at the relevant time, a default of Rs. 6.7 Crores was found as against the respondent No.2. The respondent No.2 had been declared a NPA by Abhyudaya Co-operative Bank Limited on 23.12.1999. Ultimately, a Recovery Certificate dated 24.12.2001 was issued for this amount. A Section 7 petition was filed by the Respondent No.1 on 21.07.2017 before the NCLT claiming that this amount together with interest, which kept ticking from 1998, was payable to the respondent as the loan granted to Respondent No

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