The National Company Law Appelate Tribunal (NCLAT) has dismissed an appeal by builder Neelkanth Township against bankruptcy proceedings, saying its reference to a 1963 law that prescribes a time limit to initiate recovery of loans is not applicable.
The decision may allow small-ticket lenders to recover their money.
Several operational and smallticket lenders who had thrown in the towel because they did not approach a court within a set time period as prescribed by the Law of Limitation can now use the Insolvency and Bankruptcy Code to ge their claims paid.
“The ground taken on behalf of the appellant is barred by limitation, as the debentures matured between the years 2011 and 2013 is not based on law,” the Tribunal said on Monda…
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