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

Sunrise Textiles Ltd's operational creditor files a Section 9 application before the NCLT. The corporate debtor argues that the Limitation Act, 1963 has no role in IBC proceedings. Which statement correctly reflects the position under the Code?

The Limitation Act, 1963 applies, as far as may be, to proceedings before the Adjudicating Authority. Section 238A extends it to the NCLT, NCLAT, DRT and DRAT, so it is not excluded from the Code and is not confined to appeals or to any single forum.

  1. AThe Limitation Act, 1963 applies, as far as may be, to proceedings before the Adjudicating AuthorityCorrect
  2. BThe Limitation Act, 1963 applies only to appeals before the NCLAT and not to proceedings before the NCLT
  3. CThe Limitation Act, 1963 is wholly excluded from the Code because it is a complete code
  4. DThe Limitation Act, 1963 applies only to proceedings before the Debt Recovery Tribunal

Explanation

Section 238A makes the Limitation Act, 1963 applicable, as far as may be, to proceedings or appeals before the Adjudicating Authority, NCLAT, DRT or DRAT. The option limiting it to the NCLAT ignores that proceedings before the NCLT are expressly covered.

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