Summary
- National Company Law Appellate Tribunal at Chennai, in Company Appeal (AT) (CH) (Ins) No.383/2022, Mr. T. Venkatram Reddy vs L&T Finance Limited & Anr.
- Whether the initiation of proceedings under Section 95 of the I & B Code was barred by limitation due to the date of default being stated as 01.08.2012 in the demand notice issued on 20.01.2020.
- Tribunal observed that the date of default mentioned in the notice cannot be altered to extend limitation based on a theory of continuing guarantee.
- The definition of "default" under Section 3(12) of I & B Code indicates a singular event, and the demand notice's date must be adhered to for limitation purposes.
- This judgment clarifies the interpretation of default and limitation under I & B Code, impacting future insolvency proceedings involving guarantees.
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