IBC cannot be resorted to revive time barred debts…..

Insolvency & Bankruptcy Code v. Limitation Act

 The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 (“Ordinance”) assented to by the President of India on June 6, 2018 has, inter-alia, provided much needed clarity on the issue of applicability of the provision of Limitation Act, 1963 to the proceedings under the Insolvency & Bankruptcy Code, 2016 (“Code”).

Pursuant to the Ordinance, a new Section 238A has been inserted in the Code which provides that the provisions of Limitation Act, 1963 shall, as far as may be, apply to proceedings or appeals before the Adjudicating Authority (i.e., the National Company Law Tribunal and the Debt Recovery Tribunal), the National Company Law Appellate Tribunal, the Debt Recovery Tribunal, or the Debt Recovery Appellate Tribunal.

Accordingly, the proceedings under the Code cannot be resorted to recover the debts which are time-barred under the Limitation Act, 1963.