Limitation

You lend a friend money for a scooter and forget about it for years. One day you decide to ask for it back. Can you still sue? The answer is not about fairness. It is about time: the law sets a deadline, and after the deadline the claim is dead, even if the money is still owed. The same is true for a bank or supplier who wants to start insolvency proceedings against a company. Section 238A of the Code tells you which clock applies.

In two minutes

Section 238A applies the Limitation Act 1963, as far as may be, to proceedings and appeals before the Adjudicating Authority, the NCLAT, the Debt Recovery Tribunal and the Debt Recovery Appellate Tribunal; an application under the Code for which no period is otherwise prescribed is governed by the three-year residuary article of the Act.

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