Supreme Court of India
Digital Supreme Court Reports
The Official Law Report Fortnightly ISSN: 3048-4839 (Online)
Home
Full Text

B. K. EDUCATIONAL SERVICES PRIVATE LIMITED vs. PARAG GUPTA AND ASSOCIATES

SCR Citation: [2018] 12 S.C.R. 794
Year/Volume: 2018/ Volume 12
Date of Judgment: 11 October 2018
Petitioner: B. K. EDUCATIONAL SERVICES PRIVATE LIMITED
Disposal Nature: Others
Neutral Citation: 2018 INSC 956
Judgment Delivered by: Hon'ble Mr. Justice R.F. Nariman
Respondent: PARAG GUPTA AND ASSOCIATES
Case Type: CIVIL APPEAL /23988/2017
Order/Judgment: Judgment
1. Headnote

Insolvency and Bankruptcy Code, 2016 – s.238A (As insertedby Insolvency and Bankruptcy Code (Second Amendment) Act, 2018w.e.f. 06.06.2018) – s.238A, if retrospective in nature – Held: s.238Abeing clarificatory of law and being procedural in nature, must beheld to be retrospective – Amendment of s.238A would not serve itsobject unless it is construed as being retrospective, as otherwise,applications seeking to resurrect time-barred claims would have tobe allowed, not being governed by the law of limitation – LimitationAct, 1963.Insolvency and Bankruptcy Code, 2016 – s.238A (As insertedby Insolvency and Bankruptcy Code (Second Amendment) Act, 2018w.e.f. 06.06.2018) and ss.7 & 9 – Application for initiation of‘Corporate Insolvency Resolution Process’ – Whether Limitation Act,1963 will apply to applications that are made u/s.7 and/or s.9 ofthe Code on and from its commencement on 01.12.2016 – Held:Since, Limitation Act is applicable to applications filed u/ss. 7 and9 of the Code from the inception of the Code, Art.137 of the LimitationAct gets attracted – “The right to sue”, therefore, accrues when adefault occurs – If the default has occurred over three years priorto the date of filing of the application, the application would bebarred u/Art.137 of the Limitation Act, save and except in thosecases where, in facts of the case, s.5 of the Limitation Act may beapplied to condone delay in filing such application – LimitationAct, 1963 – Art.137 and s.5.

2. Case referred
3. Act
  • Insolvency and Bankruptcy Code, 2016 (31 of 2016)
  • Limitation Act, 1963 (36 of 1963)
4. Keyword
  • Insolvency and Bankruptcy Code
5. Equivalent citation
    Citation(s) 2018 AIR 5601 = 2019 (11) SCC 633 = 2019 (11) Suppl. SCC 633 = 2018 (12) JT 315 = 2018 (12) Suppl. JT 315 = 2018 (14) SCALE 482