Issue of fresh Period of Limitation from date of MSME Order – Pan Pacific Engineering Services Pvt. Ltd. Vs. Ayyappa Hydro Power Ltd. – NCLAT New Delhi
The default was committed on 15.06.2015. The Operational Creditor filed an application before the Chairman MSME which was allowed by Order dated 10.11.2020. After the said Order, Section 8 Notice was issued and Application was filed on 12.11.2021. The Adjudicating Authority took the view that the default having been committed on 15.06.2015, the Application u/s 9 of IBC is barred by time.
Hon’ble NCLAT held that the Adjudicating Authority having already held that date of default being 15.06.2015, the application is barred by time, we see no reason as to why again fresh period of limitation can be given to the Appellant from the date of MSME Order dated 10.11.2020. Right to file application under Section 7 accrued to the Appellant on 15.06.2015 which was a date of default. If we take the date of default as on 10.11.2020 as contended by Learned Counsel for the Appellant, the said date is between the prohibited period under Section 10A and no application can be filed for any default committed during the Section 10A Period.