The NCLAT, New Delhi Bench opined that the TDS deduction cannot give any extension to the limitation period.
It was further ruled that even if no defence of limitation was raised, application barred due to time has to be rejected.
Brief Facts:
The present appeal has been filed against the order dismissing application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC”) on the ground of limitation.
Contentions of the Appellant:
It was contended that there was confirmation of the account by Corporate Debtor on 01.04.2016 and further TDS deduction was made on 09.06.2016. It is submitted that Application filed on 04.02.2020, thus, was not barred by time.
Observations of the Tribunal:
It was noted that the amount was due on 01.04.2016.
It was opined that even if the assertion that after the confirmation of the accounts, Financial Creditor got a fresh period of limitation, the Application filed on 04.02.2020 was barred even after 01.04.2016.
Further, the Bench opined that the TDS deduction cannot give any extension to the limitation period.
It was further ruled that even if no defence of limitation was raised, application barred due to time has to be rejected.
The decision of the Court:
Accordingly, the decision of the NCLT was upheld.
Case Title: M/s. Sheetal Impex Pvt. Ltd. v. Shree Swastic Sales Corporation Pvt. Ltd.
Case No.: Comp. App. (AT) (Ins.) No. 640 of 2023
Coram: Justice Ashok Bhushan , Barun Mitra (Technical Members), Arun Baroka (Technical Members)
Advocates for Appellant: Advs. Vivek Jain, Abhinav Jain, Honey Kumbha, Suchitra Kumbhat
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