# B.K. Educational Services Private Limited Vs Parag Gupta and Associates Civil Appeal No. 23988-2017 & Ors

> SC judgment dated 2018-10-11. Citation: TCN-2018-SC-00010. The appeals concern the applicability of Section 238A of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** SC
- **Order date:** 11 Oct 2018
- **Citation:** TCN-2018-SC-00010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/bk-educational-services-private-limited-vs-parag-gupta-and-associates-civil-appe-e68013cf

## Summary

### Background

The appeals concern the applicability of Section 238A of the Insolvency and Bankruptcy Code (IBC), 2016, which incorporates the Limitation Act, 1963, to proceedings under Sections 7 and 9 of the IBC. The National Company Law Appellate Tribunal (NCLAT) had previously ruled that the Limitation Act does not strictly apply to the initiation of Corporate Insolvency Resolution Process (CIRP) but that the doctrine of limitation and prescription should be considered. The appellants argue that Section 238A is clarificatory and should be applied retrospectively, while the respondents contend that the IBC is a complete code and the Limitation Act should not apply.

## Facts

B.K. Educational Services Private Limited filed appeals concerning the applicability of Section 238A of the Insolvency and Bankruptcy Code (IBC), 2016, which incorporates the Limitation Act, 1963, to proceedings under Sections 7 and 9 of the IBC. The appeals arose because the National Company Law Appellate Tribunal (NCLAT) had previously ruled that the Limitation Act does not strictly apply to the initiation of Corporate Insolvency Resolution Process (CIRP) but that the doctrine of limitation and prescription should be considered. The appellants argued that Section 238A is clarificatory and should be applied retrospectively, while the respondents contended that the IBC is a complete code and the Limitation Act should not apply. The core issue revolves around whether

…

## Issues and analysis

### Issue 1: Whether the Limitation Act, 1963, applies to applications made under Section 7 and/or Section 9 of …

**Ratio:** The Limitation Act, 1963, applies to applications filed under Sections 7 and 9 of the

…

**Reasoning:** The court reasoned that Section 433 of the Companies Act, 2013, applies the provisions of

…

**Interpretation:** The court interpreted that the IBC was not intended to allow the revival of

…

**Application:** The court applied the ratio to the facts by stating that if a default occurred

…

## Parties

- **Judges:** ROHINTON FALI…; NAVIN S…
- **Appellants:** B.K. EDUCATIONAL…
- **Respondents:** PARAG GUPTA AND…
- **Other parties:** 7th Edition…; time-barre…; +7 more

## Timeline

- **2016-12-01 — Commencement…**: The Insolvency and Bankruptcy…
- **2017-11-07 — NCLAT Or…**: The National Company Law Appellate Tribunal (NCLAT) issued an impugned order in Civil…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/bk-educational-services-private-limited-vs-parag-gupta-and-associates-civil-appe-e68013cf