Limitation Clock Under IBC: Sleight In Procedural Rules Cannot Be Used To Defeat Substantive Provisions

Limitation under the Insolvency and Bankruptcy Code, 2016 ("IBC") has become contentious in the post COVID-19 era. With the Supreme Court's blanket pause in computation of the limitation period from March 15, 2020 to October 1, 2021 ("suo moto order") the question of limitation is being raised frequently before Courts.

Most recently, in the case of V. Nagarajan v. SKS Ispat and Power Ltd. & Ors.¹ the issue before the Supreme Court was in connection with calculating limitation period for filing an appeal under section 61 of IBC.

This article discusses key aspects of the Supreme Court's judgement.

Facts of the Case (Limited to the decision of the Supreme Court)

The liquidator for Cethar Ltd. (under liquidation) ("Appellant") filed an application seeking interim relief against invocation of a performance bank guarantee before the National Company Law Tribunal, Chennai ("AA / NCLT"). The AA refused this application on separate grounds on December 31, 2019. An