Filing of IA in same proceeding, dismissed as withdrawn on request by Appellant: NCLAT denies benefit of Sec 14 Limitation Act [Read Order]

The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT), denied benefit of Setion 14 of the Limitation Act on the ground that an Interlocutory Application (IA) was filed in the same proceeding, and was dismissed as withdrawn on request by the Appellant, Isolux Corsan India Engineering & Constructions Pvt Ltd.

The Appellant is claiming benefit of Section 14 of the Limitation Act. The Appellant had been pursuing IA No. 145 of 2022 before the Adjudicating Authority where the Resolution Plan was challenged on the ground that Resolution Plan does not provide for the debts of the Operational Creditors. The above-mentioned IA was filed after filing of I.A. No. 79/2022 by the Resolution Professional seekingapproval of the Resolution Plan. Later the Appellant withdrew the above-mentioned IA and thereafter the present Appeal has been filed.

Section 14 of the Limitation Act in strict terms does not apply to the Appeal which is clear from the plain reading of Section 14 of the LimitationAct.

A Bench consisting of Justice Ashok Bhushan, Chairperson Dr. Alok Srivastava, Member (Technical) and Barun Mitra, Member (Technical)observed that “Present is not a case where it is even contended that IA No. 145 of 2022 was not entertained due to any defect of the jurisdiction or other cause of like nature. The Adjudicating Authority before whom the Application was filed, was fully competent to entertain the Application. We however are of the view that the principle under Section 14 is attracted when a claimant is prosecuting “another civil proceeding” the use of expression “another civil proceeding” as occurring in Section 14(1) and 14(2) of the imitation Act is for definite purpose and object.”

“We thus are satisfied that the Applicant is not entitled to claim benefit of Section 14 of the Limitation Act, 1963 on account of having filed an I.A. No. 145 of 2022 in the same proceeding which was dismissed as withdrawn on the request made by the Appellant” the Tribunal held.

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