Introduction
The application of the provisions of the Limitation Act, 1963
("Limitation Act") to the Insolvency and Bankruptcy Code,
2016 ("Code") has been an area of concern for creditors
in India. Especially, the limitation period has proved to be a road
block in resolving old accounts where lenders were exploring other
modes of recovery prior to initiating proceedings under the Code.
This article summarizes issues revolving the impact of the
Limitation Act on the proceedings under the Code.
Brief History- The Beginning of the Storm
The National Company Law Appellate Tribunal ("NCLAT")
in B.K.Educational v. Parag Gupta & Associates ruled that the
Limitation Act is not applicable to insolvency resolution
proceedings under the Code. Subsequently, the legislature
intervened to clear the confusion caused by the NCLAT's view
and inserted Section 238A (Limitation) in the Code. Quite apart
from the amendment of the Code, the Supreme Court in
B.K.Educational v. Parag
