For calculation of period of limitation, invoices for the period preceding three years from the date of the application under Section 9 of IBC ought to be considered, rather than considering the starting point of limitation from the date of first invoice – M/s Next Education India Pvt. Ltd. Vs. M/s K12 Techno Services Pvt. Ltd. – Supreme Court
In this case, Operational Creditor raised 187 different invoices for the Digital Classroom Solution Services provided for the period between 12.03.2011 and 30.06.2017. The amount under different invoices were unpaid, which gave rise to the appellant to initiate the proceedings under Section 9 of the IBC before the NCLT. The NCLT considering the starting point of limitation as 12.03.2011 held that the claim is barred by limitation. NCLAT dismissed appeal.
Hon’ble Supreme Court held that NCLT did not take into consideration the subsequent invoices at least preceding three years from the date of filing of Section 9 application, which ought to have been considered. Under the circumstances, the NCLT ought to have considered the invoices at least for the period preceding three years from the date of the application under Section 9, rather than considering the starting point of limitation as 12.03.2011.
