Section 433: Limitation

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
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Legal Commentary & Landmark Judgments: Section 433

Section 433 expressly applies the provisions of the Limitation Act, 1963 to all proceedings or appeals before the NCLT and NCLAT, barring stale claims and governing condonation of delay.

  • Blanket Statutory Application: Applies the Limitation Act, 1963 'as far as may be' to all applications, petitions, and appeals instituted before the NCLT or NCLAT.
  • Three-Year General Period under Article 137: Governs residual corporate and insolvency petitions under Article 137 of the Limitation Act, prescribing a 3-year limitation period running from the date the right to apply accrues.
  • Section 5 Condonation and Section 18 Acknowledgement: Permits condonation of delay upon proof of sufficient cause (where not expressly barred by special limitation periods) and extends limitation upon written acknowledgement of liability.
Key Landmark Precedents:
  • B.K. Educational Services Pvt. Ltd. v. Parag Gupta and Associates, (2019) 11 SCC 633: The Supreme Court held that Section 433 makes the Limitation Act applicable to corporate and insolvency proceedings ab initio; stale debts cannot be revived through tribunal filings.
  • Gaurav Hargovindbhai Dave v. Asset Reconstruction Co. (India) Ltd., (2019) 10 SCC 572: Held that an application under Section 7 IBC is governed by Article 137 of the Limitation Act, running from the date of default, not the date of NPA classification or subsequent recovery steps.
  • Dena Bank v. C. Shivakumar Reddy, (2021) 10 SCC 330: Held that balance sheet entries, settlement offers, and recovery certificates constitute valid acknowledgments of debt under Section 18 of the Limitation Act, refreshing the period of limitation.
Courtroom Practice & Strategic Litigation Guidance:

When opposing corporate petitions or insolvency admissions, calculate the three-year limitation period from the initial date of default; scrutinize balance sheets to challenge whether an auditor's qualification negates the intent to acknowledge debt under Section 18.