Litigation News

DRT proceedings under SARFAESI do not extend the period of limitation for IBC: NCLAT

Aditi Singh

The National Company Law Appellate Tribunal (NCLAT) has held that proceedings before the Debt Recovery Tribunals (DRT) under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) etc will not extend the period of limitation for the purpose of the Insolvency & Bankruptcy Code, 2016. (Bimal Kumar vs BOI)

"..the proceedings initiated or pending in DRT, either initiated under SARFAESI or under debts and due to Banks and Financial Institutions cannot be taken into account for the purposes of limitation (under IBC)."

The Judgment was passed by a three-member Bench of Member (Judicial) Venugopal M, Members (Technical) Kanthi Narhari and VP Singh.

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