Whether prior proceedings under the SARFAESI Act will qualify for the exclusion of time under Section 14 of the Limitation Act? – State Bank of India Vs. SRC Metalicks Pvt. Ltd. – NCLT Kolkata Bench
The Adjudicating Authority dismissed CIRP application u/s 7 of IBC holding that as opined by the Hon’ble Supreme Court in Sesh Nath Singh & Anr. v. Baidyabati Sheoraphuli Cooperative Bank Limited & Anr. (2021) ibclaw.in 49 SC, the exclusion under section 14(2) of the Limitation Act applies to a proceeding where the party has prosecuted diligently and in good faith before the wrong forum. Further, in light of the above judgment this Adjudicating Authority in The Federal Bank Limited Vs. Uniworth Limited (2021) ibclaw.in 359 NCLT has observed that the Debt Recovery Tribunal(DRT) is not a wrong forum for exclusion of time under section 14 of the Limitation Act, since a Financial Creditor is perfectly entitled to maintain the proceedings initiated by it under the RDDBFI Act, 1993 before a DRT for recovery of its dues.
