Financial creditor plea for insolvency doesn't get time barred even if filed after 3 yrs: SC

Updated: few hours ago

New Delhi, Aug 4 (PTI) The Supreme Court on Wednesday ruled that plea by financial creditor for initiation of insolvency resolution process against a corporate debtor before the adjudicating authority will not get time barred on the ground that it had been filed beyond a period of three years from the date of declaration of the loan account as NPA.

A bench of Justices Indira Banerjee and V Ramasubramanian set aside an order of National Company Law Appellate Tribunal (NCLAT) by which it had said that application under section 7 of Insolvency and Bankruptcy Code (IBC) of Dena bank (now Bank of Baroda) for initiation of insolvency process was time barred.