SAGAR SHARMA & ANR. versus PHOENIX ARC PVT. LTD. & ANR.

SAGAR SHARMA & ANR. versus PHOENIX ARC PVT. LTD. & ANR.

Article 137 of the Limitation Act alone applies to applications filed under Section 7 of the Insolvency and Bankruptcy Code; the date the Code came into force does not trigger limitation; an application under Section 7 is not to enforce a mortgage liability.

Parties
Appellant: Sagar Sharma & Anr.; Respondent: Phoenix ARC Pvt. Ltd. & Anr.
Jurisdiction
India
Judgment Date
30 September 2019
Procedural Posture
Civil Appeal / Appeal From Order of National Company Law Appellate Tribunal
Outcome
Appeal allowed; judgment under appeal set aside; matter remitted for determination afresh.
Legal Topics
Limitation, Insolvency and Bankruptcy Code Section 7, Application of Limitation Act Article 137
Insolvency and Bankruptcy Limitation Insolvency and Bankruptcy Code Section 7 Application of Limitation Act Article 137

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Parties

Sagar Sharma & Anr.

Appellant

Phoenix ARC Pvt. Ltd. & Anr.

Respondent

Procedural Posture

Civil Appeal / Appeal From Order of National Company Law Appellate Tribunal

Legal Issues

  1. 1 Whether the date of coming into force of the Insolvency and Bankruptcy Code triggers limitation for applications under Section 7.
  2. 2 Which article of the Limitation Act applies to applications under Section 7 of the Code.

Ratio Decidendi

Article 137 of the Limitation Act alone applies to applications filed under Section 7 of the Insolvency and Bankruptcy Code; the date the Code came into force does not trigger limitation; an application under Section 7 is not to enforce a mortgage liability.

Court Disposition

Appeal allowed; judgment under appeal set aside; matter remitted for determination afresh.

Orders

  • The NCLT order dated 29.01.2019 shall remain stayed until further orders from the NCLAT.
  • Both sides may argue the case on facts on the footing that Article 137 of the Limitation Act alone will apply.