Recovery Certification revives Limitation

The National Company Law Tribunal, Cuttack Bench, has admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, holding that a Recovery Certificate issued by the Debts Recovery Tribunal constitutes a fresh cause of action for initiating insolvency proceedings. 

The Tribunal further held that financial hardship, unsuccessful One Time Settlement proposals and the pendency of earlier winding-up proceedings do not constitute valid defences once the existence of financial debt and default stands established.