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CS Professional · Insolvency and Bankruptcy - Law and Practice · Adjudication and Appeals for Corporate Persons

Meghdoot Pharma Ltd is under a moratorium for CIRP for 180 days. A supplier's claim against Meghdoot would otherwise expire during the moratorium. Under Section 60(6) of the IBC, how is limitation computed for a suit or application by or against the corporate debtor?

The moratorium period is excluded. Section 60(6) states that, notwithstanding the Limitation Act, 1963 or any other law, the period during which a moratorium order is in place is left out when computing limitation for any suit or application by or against the corporate debtor.

  1. AThe moratorium period is excluded from computing limitation, despite the Limitation Act, 1963Correct
  2. BThe moratorium period counts, as the Limitation Act, 1963 prevails
  3. CLimitation stops permanently once CIRP begins
  4. DLimitation is extended by exactly fifteen days

Explanation

Section 60(6) says that notwithstanding the Limitation Act, 1963 or any other law, the period during which a moratorium is in place is excluded when computing limitation for a suit or application by or against the corporate debtor. The Limitation Act does not override this.

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