In a significant legal development, the Court ruled on the extension of the limitation period for filing claims in an IBC case. The decision has far-reaching implications for litigants whose limitations expired during a specific period. The Court’s detailed legal analysis sheds light on the complexities surrounding limitation periods and offers clarity on the extension granted. Stay tuned to uncover the details of this crucial ruling!
Facts
- The Appellant filed an appeal before the NCLAT under Section 61 of the IBC, which was dismissed mainly because the Resolution Process had been approved by the Committee of Creditors on 21.06.2020.
- The Appellant’s claim was rejected by the Resolution Professional appointed for the CIRP on the grounds of being filed beyond the time limit.
- The Appellant later filed an application under Section 60(5) of the IBC for condonation of delay in filing its claim, which was also dismissed by the Adjudicating Authority.
- The Appellant invoked the Arbitration Clause in the contract with the Corporate Debtor and filed an application in the Calcutta High Court for appointment of an Arbitral Tribunal.
- The Appellant and the Respondent had a dispute which was adjudicated by an appointed Arbitrator.
- The Appellant filed a statement of claim and the Corporate Debtor filed a counter statement.
- After exchanging documents and hearing both parties, the Arbitrator issued a final award on 30th November, 2018.
- The final award granted the Claimant a sum of Rs. 55,01,661 and entitled them to interest at a rate two percent higher than the prevailing rate from August 8, 2014, till the date of payment.
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Decision
- The learned Adjudicating Authority did not consider the orders passed by the Court in Suo Motu Writ Petition No 3 of 2020.
- The appellant’s claim was required to be filed within 3 months from 11.02.2020, and it was actually filed before 14th January, 2021.
- The rejection of the appellant’s claim by the Adjudicating Authority on 9.7.2021 was set aside by the Court.
- The application of the appellant under Section 60(5) of the IBC was allowed by the Court.
- The period from 22.03.2020 till 14.3.2021 is to be excluded in computing the limitation for any application.
- All litigants whose limitation expired after 22.03.2020 are entitled to an extension of limitation till the 90th day from 15.03.2021.
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Case Title: GPR POWER SOLUTIONS PVT. LTD. Vs. SUPRIYO CHAUDHURI (2021 INSC 799)
Case Number: C.A. No.-006553 / 2021
