# In the matter of M/s Invent Asset Securitisation and Reconstruction Pvt. Ltd. Vs. Girnar Fibres Ltd., Civil Appeal No. 3033 of 2022

> SC judgment dated 2022-04-25. Citation: TCN-2022-SC-00054. The case involves an appeal against the decision of the National Company Law Tribunal (NCLT),…

- **Court:** SC
- **Order date:** 25 Apr 2022
- **Citation:** TCN-2022-SC-00054
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/ms-invent-asset-securitisation-and-reconstruction-pvt-ltd-vs-girnar-fibres-ltd-c-49828344

## Summary

### Background

The case involves an appeal against the decision of the National Company Law Tribunal (NCLT), Chandigarh Bench, and the National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi. The appellant had filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, which was dismissed as being barred by limitation. The Appellate Tribunal pointed out that the right to sue accrued on 28.02.2002, and there was no acknowledgement of liability under Section 18 of the Limitation Act, 1963.

## Facts

M/S Invent Asset Securitisation and Reconstruction Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/S Girnar Fibres Ltd. The National Company Law Tribunal, Chandigarh Bench, and the National Company Law Appellate Tribunal, Principal Bench, New Delhi, dismissed the application, finding it barred by limitation. The right to sue accrued on 28.02.2002. The appellant attempted to introduce documents related to loan restructuring and a revival letter, but these were deemed insufficient. The appellant's intent was to invoke the IBC for recovery against the corporate debtor. The Supreme Court heard the appeal against the NCLAT's decision.

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was rightly …

**Ratio:** The principle of limitation dictates that legal actions must be initiated within a

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**Reasoning:** The Appellate Tribunal determined that the right to sue accrued on 28.02.2002, and the

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**Interpretation:** Section 7 of the IBC allows financial creditors to initiate corporate

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**Application:** The court applied the principle of limitation to the facts, noting that the

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## Parties

- **Judges:** DINESH MAHE…; ANIRUDDHA…
- **Appellants:** M/S INVENT ASSET…
- **Respondents:** M/s. Girnar…
- **Other parties:** Affir…

## Timeline

- **2002-02-28 — Accrual of Rig…**: The date on which the right to sue accrued,…
- **2021-11-18 — Impugned Judgment by…**: Date of the impugned judgment passed by the National Company Law Appellate Tribunal,…

## 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)

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