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Judgment
ORDER
09.02.2022: Heard Learned Counsel for the Appellant.
This Appeal has been filed against the judgment and order dated 30.11.2021 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench-V, by which the Application filed by the Appellant under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“Code” for short) has been rejected. Appellant claims that he is Financial Creditor and he has advanced certain amounts as a loan to the Respondent in the year 2005-2006 but the amount was not repaid. In fact, he filed the claim before the Arbitrator claiming that he was a partner in the business in which award was given on 01.04.2013 rejecting his claim and observations were made that it was a loan transaction as was contended by the Corporate Debtor. Against the said Award, Application under Section 34 was filed which has been dismissed on 07.12.2016 and first Appeal was also dismissed on 08.05.2017. Learned Adjudicating Authority dismissed the Application. One of the grounds for dismissal was that the Application is clearly barred by time and cannot be entertained.
Learned Counsel for the Appellant challenging the finding of the Adjudicating Authority contends that although the Claimant had received loan in the year 2005-2006 but the question as to whether it was loan or not was decided only on 01.04.2013. Hence, this Application is not barred by time and he will get benefit of the said finding which became final on 08.05.2017 when the Appeal was dismissed.
We have considered the submissions of the Learned Counsel for the parties and perused the record.
From the materials on record, it is clear that the last repayment was made on 01.09.2006. The limitation under Article 137 of the Limitation Act shall be three years from the date when right to sue accrue. The submission of the Counsel for the Appellant is that in view of the Award which was given on 01.04.2013 dismissing the claim of the Appellant and noticing the case of the Corporate Debtor that it was a loan, hence, he got right to file proceeding thereafter and he submits that the said finding became final only on 08.05.2017 when the first Appeal was dismissed hence, he should get benefit of that period. The Arbitration proceedings which was undertaken under Arbitration & Conciliation Act 1996 and the Award on 01.04.2013 shall not give any extension of limitation to the Appellant. The Appellant is not claiming any benefit of Section 14 of the Limitation Act. In the Award, observation made that Corporate Debtor had given loan, shall not give any extension of limitation. The right to sue accrued on 01.09.2006 and the limitation being only three years, the Application under Section 7 filed in the year 2019 was highly barred by time and no error has been committed in the impugned order by the Adjudicating Authority in rejecting the said Application.
The Appeal is dismissed. No costs.