Jurisprudence emanating from Section 238-A of the Insolvency & Bankruptcy Code, 2016: B.K. Educational Services (P) Ltd. V/s Parag Gupta & Associates (2018)
Section 238-A of the I&B Code, 2016 (hereinafter referred to as the ‘IBC’) was inserted by the Insolvency & Bankruptcy Code (Second Amendment) Act, 2018 with effect from 06.06.2018. Section 238-A of the IBC reads as under:
“238-A. Limitation- The provisions of the Limitation Act, 1963 (36 of 1963) shall, as far as may be, apply to the proceedings or appeals before the Adjudicating Authority, the National Company Law Appellate Tribunal, the Debt Recovery Tribunal or the Debt Recovery Appellate Tribunal, as the case may be.”
The moot question that arose for adjudication in the matter of: B.K. Educational Services (P) Ltd. (Supra) was:
I. Whether the Limitation Act, 1963 will apply to applications that are made under Section 7 and/or Section 9 of the IBC on and from its commencement on 01.12.2016 till 06.06.2018?
II. Section 238-A of the IBC is prospective or retrospective in nature?