Kalpraj Dharamshi v. Kotak Investment Advisors Ltd., (2021) SCC OnLine SC 204 considered applicability of Section 14 of The Limitation Act, 1963 to reckoning of limitation under Section 61(1) of The Insolvency and Bankruptcy Code, 2016.
The law on limitation with respect to IBC is settled and emphatic in its denunciation of delays [Essar Steel India Limited v. Satish Kumar Gupta, (2020) 8 SCC 531; Innoventive Industries Ltd. v. ICICI Bank, (2018) 1 SCC 407; Gujarat Urja Vikas Nigam Ltd. v. Amit Gupta, (2021) SCC OnLine 194]. The power to condone delay is tightly circumscribed and conditional upon showing sufficient cause, even within period of delay which is capable of being condoned.
Recently, Two-Judge Bench of this Court in Ebix Private Ltd. v. Committee of Creditors of Educomp Solutions Ltd., (2021) SCC OnLine SC 707 interpreted legislative background of IBC to stress on predictability and timeliness woven into design of IBC.
Court is not empowered to condone delays beyond statutory prescriptions in special statutes containing a provision for limitation [Union of India v. Popular Construction Company, (2001) 8 SCC 470; Singh Enterprises v. Commissioner of Central Excise, Jamshedpur, (2008) 3 SCC 70; Chhattisgarh State Electricity Board v. Central Electricity Regulatory Commission, (2010) 5 SCC 23; Bengal Chemists and Druggists Association v. Kalyan Chowdhury, (2018) 3 SCC 41].
– Hon’ble Justice Dr. D.Y. Chandrachud, V. Nagarajan v. SKS Ispat and Power Ltd., [Civil Appeal No. 3327 of 2020].