TIME BARRED DEBT CAN BE PURSUED UNDER THE INSOLVENCY AND BANKRUPTCY CODE

Published On: 01/09/2017

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In a recent judgment, the National Company Law Appellate Tribunal, New Delhi (the 'NCLAT') held that the provisions of the Limitation Act, 1963 (the 'Limitation Act') do not apply to proceedings initiated under the Insolvency and Bankruptcy Code, 2016 (the 'Code'). The judgment will have far reaching consequences as it means that a creditor can sue a corporate debtor under the Code, even though the debt is barred by time.