The Delhi Bench of National Company Law Appellate Tribunal (NCLAT) has ruled that Order of mediation along with dishonoured cheques does not imply an extension of limitation for the purposes of IBC.
The Appeal was filed against the order passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench dismissing the Application filed by the Appellant under Section 9 as barred by time. The Appellant has filed Application under Section 9 claiming as an Operational Creditor claiming for payment of principal amount of Rs. 14,01,320/- with interest upto 31.12.2019. In Part- IV of the Application, the Applicant himself has given the date of default. The Adjudicating Authority has dismissed the Application as barred by time.
The Appellant submitted that although the date of default was mentioned as 10.01.2008 in the Application under Section 9 but there was District Court Mediation on 16.11.2015 wherein the Respondent accepted their liability and the post-dated cheques issued were also dishonoured. Last cheque was dishonoured. Hence, the Application filed was within time.
The coram of Chairperson, Justice Ashok Bhushan, Technical Member, Dr. Ashok Kumar Mishra and Dr. Alok Srivastava held that when the Application comes with date of default and no other reasons given in the Application or any details for extension of limitation, we see no ground to hold that Application was well within time. The submission of the Counsel for the Appellant is that there was Mediation Order of the Court on 16.11.2015 under which Mediation, post-dated cheques were given. The Mediation which was ordered on 16.11.2015 shall not give any extension of limitation to the Appellant. The purpose of Mediation and post-dated cheques are different and the fact that the cheques were dishonored may give any right to the Appellant to take appropriate proceeding but that shall not give extension of the limitation for the Application under Section 9 of the Code to make it within time.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
