SC confirms Applicability of Limitation Act to Applications made under Section 7 and 9 of IBC

The SC, in its decision dated October 11, 2018, in B. K. Educational Services Private Limited v. Parag Gupta and Associates[1], addressed the issue of the applicability of the recently amended Section 238A (which came into effect on June 6, 2018) of the IBC, which deals with applicability of the Limitation Act, 1963 (‘Limitation Act’) to all applications made under the IBC. SC held that the Limitation Act applies to all applications filed under the IBC from the inception of the IBC, i.e. December 1, 2016 since Section 238A was a clarification of the existing position under the IBC and the law of limitation is procedural in nature and, therefore, can be applied retrospectively.

[1] Civil Appeal No. 23988 of 2017.

Published In:Inter Alia - Quarterly Edition - December 2018 [ English Chinese japanese ]
Date: December 31, 2018