Period of limitation does not commence when the debt becomes due but only when a default – Sterling and Wilson Pvt. Ltd. Vs. Bridge and Roof Company (India) Ltd. – NCLT Kolkata Bench
To identify such default the most pivotal point that comes into picture is ‘date of default’ i.e., the date on which the debtor has failed to pay the debt. The date of default is crucial to determine the date when the cause of action aroused because the right to sue under the Code occurs only when the default occurs. Further, it is a settled law now that limitation does not commence when the debt becomes due but only when a default.
