Article 62 of Limitation Act, which relates to deed of mortgage executed between the parties, cannot be taken into consideration for counting the period of limitation & if applications filed u/s 7, Article 137 of the Limitation Act alone will apply – Sagar Sharma & Anr Vs. Phoenix Arc Pvt. Ltd. & Anr – Supreme Court
The Apex court held that Article 141 of the Constitution of India mandates that our judgments are followed in letter and spirit. The date of coming into force of the IBC Code does not and cannot form a trigger point of limitation for applications filed under the Code. Equally, since “applications” are petitions which are filed under the Code, it is Article 137 of the Limitation Act which will apply to such applications. Accordingly, we set aside the judgment under appeal and direct that the matter be determined afresh. It will be open for both sides to argue the case on facts on the footing that Article 137 of the Limitation Act alone will apply.
