Bathinda Lawyers
⚖️ Shri Ganpati Jurists | Legal Insight Series
⚖️ Landmark Clarification on Limitation under IBC
Shankar Khandelwal v. Omkara Asset Reconstruction Pvt. Ltd. (SC)
📌 The Supreme Court has drawn a clear line on limitation in insolvency proceedings:
🔹 Section 7 IBC Applications are governed by Article 137 of the Limitation Act — limitation starts from the date of default.
🔹 Mere admission of claim by IRP ❌ is NOT an acknowledgment of liability under Section 18, Limitation Act.
🔹 IRP’s role is administrative, not determinative — admission of claim ≠ extension of limitation.
🔹 ⛔ Time-barred claims cannot be revived by such admissions.
🔹 ✅ Acknowledgment must be within limitation period to extend it.
🔹 🛑 However, Section 60(6) IBC allows exclusion of limitation during moratorium.
📖 Key Takeaway:
Creditors must act within limitation — procedural admissions won’t save stale claims.
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