Case Law Analysis
|National Company Law Appellate Tribunal
Section 7 IBC | Continuing Default Creates Fresh Cause of Action Under Section 22 Limitation Act; Winding-Up Pendency No Bar to Admission : NCLAT
The NCLAT upheld Section 7 admission, holding that continuing failure to deliver possession generates a fresh cause of action daily under Section 22 Limitation Act. Pendency of High Court winding-up proceedings does not bar NCLT from admitting a corporate debtor. Homebuyers' claims thus survive limitation through continuing default, and IBC initiation isn't stalled by parallel liquidation petitions.