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The delay caused by the Operational Creditor in presenting the cheque for collection cannot be exempted from computation of period of limitation – Jindal Stainless Ltd. Vs. Zenith Strips Ltd. – NCLT Mumbai Bench

The Adjudicating Authority held that let us assume for argument sake without admitting that both the above cheques are true and genuine, yet one of the cheques was returned on 06.08.2016 and the above Company Petition being filed on 09.08.2019, is clearly barred in respect of that particular cheque. Even otherwise it is incorrect to say that the limitation would begin to run from the date of dishonour of cheques since the limitation would begin to run from the date of issue of the cheques and not from the date of return of the cheques as contended by the Operational Creditor. The above analogy holds good only for initiating proceedings against Corporate Debtor under Section 138 of Negotiable Instrument Act and not in recovery proceedings or initiating proceedings under the IBC Code. The delay caused by the Operational Creditor in presenting the cheque for collection cannot be exempted from computation of period of limitation since no person is entitled to take advantage of his own wrong as per the settled position of law.

The delay caused by the Operational Creditor in presenting the cheque for collection cannot be exempted from computation of period of limitation – Jindal Stainless Ltd. Vs. Zenith Strips Ltd. – NCLT Mumbai Bench Read Post »

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