Brijesh Kumar Agarwal vs Punjab National Bank & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 312 of 2018
Ratio decidendi
The rule this decision rests on
The Tribunal rejected the contention that the Financial Creditor's application under Section 7 was barred by limitation because the cause of action was continuing; it further held that, even if the Limitation Act applied to a Section 7 application, the applicable period under Article 137 runs from the date the right to apply accrued, and that right accrued only when the I&B Code came into force on 1 December 2016, so the application was within time.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Mr. Brijesh Kumar Agarwal ...Appellant
Vs.
Punjab National Bank & Anr. ...Respondents
Present: For Appellant: - Mr. Sanchit Garga and Mr. Harsh Chopra, Advocates.
ORDER
05.07.2018─ This appeal has been preferred by the Director and
Shareholder of M/s. Kunj Forgings (P) Ltd.- ('Corporate Debtor') against
the order dated 17th May, 2018, whereby and whereunder the application
under section 7 of the Insolvency and Bankruptcy Code, 2016
(hereinafter referred to as "I&B Code") preferred by the Punjab National
Bank- ('Financial Creditor') has been admitted.
2. Learned counsel for the Appellant submitted that the Bank has
neither acted in terms of circular and guidelines issued by the Reserve
Bank of India nor in terms of the Reserve Bank of India Act, but such
ground cannot be accepted to reject the application preferred by the
'Financial Creditor' under Section 7 of the 'I&B Code', there being
admitted default.
Contd/-........
-2-
3. Next, it was contended that the amount due is barred by 'limitation'
but such submission cannot be accepted in view of the fact that there is
a continuous cause of action. Even if it is accepted that Limitation Act is
applicable, in such case Article 137 of Part II of the Limitation Act will be
applicable whereunder three years' period from the date of right to apply
accrued will be applicable. In the present case, the right to apply under
Section 7 accrued to 'Punjab National Bank' on 1st December, 2016, when
'I&B Code' came into force. Before the same, it had no right to apply under
Section 7 of the 'I&B Code'. Therefore, even if the Limitation Act is made
applicable, the application being not barred by limitation, interference is
not called for.
4. There being no merit, the appeal is dismissed. No costs.
(Justice S.J. Mukhopadhaya) Chairperson
(Justice Bansi Lal Bhat) Member(Judicial) Ar/uk
Company Appeal (AT) (Insolvency) No. 312 of 2018
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