Jones Lang Lasalle Property … vs M. A. Leasing And Consruction Pvt. Ltd. … on 6 May, 2026

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    Calcutta High Court

    Jones Lang Lasalle Property … vs M. A. Leasing And Consruction Pvt. Ltd. … on 6 May, 2026

    Author: Aniruddha Roy

    Bench: Aniruddha Roy

                      In The High Court at Calcutta
                               Ordinary Original Civil Jurisdiction
                                     [Commercial Division]
                                          Original Side
    
         Present: The Hon'ble Justice Aniruddha Roy
    
                                     C.S. (COM) 171/2025
    
    
         JONES LANG LASALLE PROPERTY CONSULTANTS (INDIA) PRIVATE LIMITED
                                            -VERSUS-
                    M. A. LEASING AND CONSRUCTION PVT. LTD. AND ORS.
    
    
    
    
         For the plaintiff :                   Mr. Sourojit Dasgupta, Adv.
                                               Mr. Subhradip Roy, Adv.
                                               Mr. Souvik Bose, Adv.
    
    
         Reserved on      : 12.03.2026
    
         Judgment on      : 06.05.2026
    
         ANIRUDDHA ROY, J.:
    

    Facts:

    1. Plaintiff on account of certain services having been rendered by it to the

    defendants claims its unpaid price/fees from the defendants. The defendant

    no. 1 had allegedly received and accepted the service provided by the plaintiff

    and the defendant nos. 2 to 4 are the directors of the defendant no. 1.

    2. On November 29, 2019, since the price/fees had not been paid by the

    defendant no. 1 to the plaintiff, a notice under Section 8 of the Insolvency

    and Bankruptcy Code, 2016 (hereinafter, IBC) was issued upon the

    defendant no. 1.

    2

    SPONSORED

    3. By a letter dated December 12, 2019, the said demand notice was replied to

    by the defendant no. 1.

    4. On the basis of the said notice, the plaintiff on July 29, 2020 had instituted

    a proceeding under Section 9 of IBC before the Jurisdictional National

    Company Law Tribunal (hereinafter, NCLT).

    5. On September 10, 2023 (at page 220) of the application NCLT dismissed

    the said Section 9 application by holding that there are pre-existing dispute

    between the parties. The relevant observation from the order is quoted

    below:-

    “In view of the above facts and circumstances, we find that there was a
    pre-existing dispute between the parties and hence the present petition
    shall be rejected on this ground alone.

    Consequently, CP (IB) No. 841/KB/2020 shall stand rejected. Needless
    to say, the operational creditor is free to pursue its remedies under any
    other law and the dismissal of the present petition shall not stand in the
    way of such pursuit of remedies.”

    6. Thereafter, the plaintiff had filed the instant suit and prays for the benefit

    under Section 14 of the Limitation Act, 1963.

    Submissions:

    7. Mr. Sourojit Dasgupta, learned Advocate appearing for the plaintiff referring

    to the provision under Section 9 of IBC submits the adjudicating authority

    shall within 14 days of receipt an application under sub-Section (2) to

    Section 9 of IBC, by an order admit the application and communicate such

    decision to the operational creditor and corporate-debtor. The application

    shall also be admitted if no notice of dispute has been received by the

    operational creditor or there is no record of dispute in the information utility.

    He submits that if there is notice of dispute, i.e., if there is a pre-existing

    dispute, the tribunal shall reject the application.

    In CS-COM/171/2025
    A.R.,J.

    3

    8. Mr. Dasgupta further submits that the adjudicating authority shall, within

    14 days of receipt of application under sub-Section (2), by an order rejecting

    the application shall communicate such decision to the operational creditor

    and corporate-debtor, if notice of dispute has been received by the

    operational creditor or there is a record of dispute in the information utility.

    9. Mr. Sourojit Dasgupta, learned Advocate appearing for the plaintiff submits

    that for an application filed under Section 9 of IBC to be entertained by the

    tribunal, at the threshold, jurisdiction to be crossed is regarding existence of

    prior dispute. If there is a pre-existing dispute, the same shall inhibit the

    tribunal from entertaining or considering the application. Thus, according to

    Mr. Dasgupta, learned Advocate, this amounts to defect of jurisdiction or

    other cause of like nature, within the meaning of Section 14 of Limitation

    Act, 1963. In support, he has relied upon a decision of the Hon’ble Supreme

    Court In the matter of: Roshanlal Kuthalia vs. R. B. Mohan Singh

    Oberoi reported at (1975) 4 SCC 628.

    10. Mr. Sourojit Dasgupta, learned Advocate submits that the said judgment In

    the matter of: Roshanlal Kuthalia (supra) was subsequently followed in

    various other judgments, which are:-

    (a) In the matter of : Union of India Vs. West Bengal Paper Mills,

    reported at (2004) 3 SCC 458;

    (b) In the matter of: Shakti Tubes Vs. State of Bihar, reported at

    (2009) 1 SCC 786;

    (c) In the matter of : M. P. Steel Corporation Vs. Commissioner of

    Central Excise, reported at (2015) 7 SCC 58.

    In CS-COM/171/2025
    A.R.,J.

    4

    11. Mr. Sourojit Dasgupta, learned Advocate submits that both the fora, NCLT

    and this Court are correct and jurisdictional for adjudication of the subject

    dispute. In those circumstances, sub-Section 14(1) of the Limitation Act

    would be applicable. In support, he has placed reliance upon a decision of

    the Hon’ble Supreme Court In the matter of India Electric Works Vs.

    James Mantosh reported at (1971) 1 SCC 24.

    12. Learned Advocate then submits that there is a difference between sub-

    Section (1) and sub-Section (2) to Section 14 of the Limitation Act. Under

    sub-Section (1) both the proceedings shall have the same matter in issue

    whereas under sub-Section (2) both the proceedings shall be for the same

    relief. Sub-Section (1) specifically provides that the subsequent proceeding

    shall be a suit whereas sub-Section (2) provides that the subsequent

    proceeding shall be an application. He submits that the provision under sub-

    Section (2) of Section 14 of the Limitation Act shall not apply in the present

    case, since the sub-sequent proceeding is not an application and both the

    proceedings are not for same relief. The proceeding under IBC is primarily

    for revival or resolution of a company, whereas in a suit the proceeding is for

    recovery of debt.

    13. Learned Advocate has relied upon a decision of the Hon’ble Supreme Court

    In the matter of: Sesh Nath Singh vs. Baidyabati Sheoraphuli reported

    at (2021) 7 SCC 313 to submit that proceeding under IBC is ultimately for

    recovery of debt, however, it cannot be denied that primary object of IBC is

    not recovery of money but only for resolution of debt of the debtor.

    In CS-COM/171/2025
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    14. Mr. Dasgupta then submits that in the present case what is required to be

    seen is whether the proceeding before NCLT and this Court relates the same

    matter in issue.

    15. Mr. Dasgupta then submits that the application filed before NCLT was based

    upon the self-same fiscal claim which is the subject-matter in the instant

    suit. The sole issue will be whether the defendant is a defaulter and liable to

    pay the plaintiff. Therefore, the matter in issue of the proceeding before

    NCLT under Section 9 of IBC and the instant suit are same and therefore the

    provision under sub-Section (1) to Section 14 of the Limitation Act shall

    apply.

    16. To bring the distinction between the two sub-Sections, Mr. Dasgupta has

    relied upon a decision of the Hon’ble Supreme Court In the matter of:

    HPCL Bio-Fuels Vs. Shahaji Bhandudas Bhad reported at 2024 SCC

    Online SC 3190. Hon’ble Supreme Court clearly laid down this scope and

    effect of two sub-Sections under Section 14 of the Limitation Act, in the

    context of IBC. In that case, the prior proceeding was before NCLT whereas

    the sub-sequent proceeding was for appointment of an arbitrator before a

    civil court, which attracted Section 14 (2) of the Limitation Act. Reliefs in the

    said two proceedings were different. For such reason, the Hon’ble Supreme

    Court refused to extend the benefit of Section 14 of the Limitation Act in that

    case. In the present case, the subsequent proceeding in the instant suit

    where the matter in issue is same with that of the previous proceeding filed

    before NCLT under Section 9 of IBC.

    17. Mr. Dasgupta, learned Advocate then placed reliance on a further judgment

    of Delhi High Court In the matter of: Seitz Gmbh Vs. Simran

    In CS-COM/171/2025
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    6

    Technologies reported at 2025 SCC Online Del 2403. In the said case,

    in a factually similar circumstance benefit of sub-Section 14 of the

    Limitation Act was granted to the plaintiff.

    18. Learned Advocate Mr. Sourojit Dasgupta for the plaintiff submits that the

    plaintiff has filed the suit within the limitation period of 3 years from the

    date when the cause of action arose on 29th October 2019, if the period from

    23rd July 2020 to 10th September 2023 is excluded as per Section 14 of the

    Limitation Act, 1963. It is further submitted that the period from 20th

    September 2024 till 12th December 2024 is liable to be excluded due to the

    mediation proceeding initiated by the plaintiff. During the total period from

    29th October 2019 till filing of the suit on 15th December 2025, there has

    been a delay of about 982 days.

    19. Unless the said delay is condoned and the instant plaint is accepted to be

    filed within the period of limitation, the plaintiff shall be non-suited without

    having any fault or latches on its part and the plaintiff shall suffer

    irreparable loss, prejudice and injury.

    20. The plaint should be accepted by applying Section 14 (1) of the Limitation

    Act.

    Decision :

    21. The core issue needs to be decided is whether the provisions laid down

    under Section 14 of the Limitation Act, 1963 shall apply in the facts and

    circumstance of this case where the previous proceeding was filed under

    Section 9 of IBC and the sub-sequent proceeding is the instant civil suit.

    In CS-COM/171/2025
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    22. For convenience Section 14 of the Limitation Act provides for exclusion of

    time of proceeding bona fide in Court without jurisdiction and is reproduced

    below:-

    “14. Exclusion of time of proceeding bona fide in Court

    without jurisdiction:-

    (1) In computing the period of limitation for any
    suit the time during which the plaintiff has been
    prosecuting with due diligence another civil
    proceeding, whether in a court of first instance or of
    appeal or revision, against the defendant shall be
    excluded, where the proceeding relates to the same
    matter in issue and is prosecuted in good faith in a
    court which, from defect of jurisdiction or other
    cause of a like nature, is unable to entertain it.

    (2) In computing the period of limitation for any
    application, the time during which the applicant has
    been prosecuting with due diligence another civil
    proceeding, whether in a court of first instance or of
    appeal or revision, against the same party for the
    same relief shall be excluded, where such proceeding
    is prosecuted in good faith in a court which, from
    defect of jurisdiction or other cause of a like nature,
    is unable to entertain it.

    (3) Notwithstanding anything contained in rule 2
    of Order XXIII of the Code of Civil Procedure, 1908 (5
    of 1908), the provisions of sub-section (1) shall apply
    in relation to a fresh suit instituted on permission
    granted by the court under rule 1 of that Order,
    where such permission is granted on the ground that
    the first suit must fail by reason of a defect in the
    jurisdiction of the court or other cause of a like
    nature.

    Explanation–For the purposes of this section,–

    (a) in excluding the time during which a former civil
    proceeding was pending, the day on which that
    proceeding was instituted and the day on which it
    ended shall both be counted;

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    (b) a plaintiff or an applicant resisting an appeal
    shall be deemed to be prosecuting a proceeding;

    (c) misjoinder of parties or of causes of action
    shall be deemed to be a cause of a like nature with
    defect of jurisdiction.”

    23. The above provision of the Limitation Act provides for exclusion of time of

    proceeding bona fide in Court without jurisdiction. Therefore, the first test

    whether the party seeking benefit under Section 14 of the Limitation Act had

    proceeded bona fide in Court without jurisdiction.

    24. Under Section 14(1) of the Limitation Act, in computing the period of

    limitation for a suit, the time during which the plaintiff has been prosecuting

    with due diligence another civil proceeding, whether in a Court of first

    instance or of appeal or revision, against the defendant shall be excluded,

    where the proceeding relates to the same matter in issue and the proceeds in

    good faith which, for defect of jurisdiction or other cause of like nature, is

    unable to entertain it. Thus, the tests require to be examined for applicability

    of Section 14(1) should be :-

    a) The subsequent proceeding must be a suit;

    b) Both the previous and sub-sequent proceeding must be civil

    proceeding;

    c) Both the previous and sub-sequent proceeding must be between the

    same parties;

    d) The previous and sub-sequent proceeding must have the same matter

    in issue;

    In CS-COM/171/2025
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    9

    e) The previous proceeding must have failed owing to defect of

    jurisdiction of previous Court or any other cause of like nature;

    f) The previous proceeding must have been prosecuted in good faith

    and with due diligence and

    g) Both the previous and the sub-sequent proceeding must be before a

    Court.

    25. Sub-Section (2) to Section 14 under the similar circumstance and

    stipulation, as stipulated under Sub-Section (1) to Section 14, relates to

    application and not a suit. The another difference in expression that under

    sub-Section (1), the sub-sequent proceeding being the suit must relate to

    the same matter in issue whereas under sub-Section (2) it is the same

    relief between the same parties. However, in the facts of the instant case,

    since the sub-sequent proceeding is a civil suit, this Court is not required to

    discuss and interpret sub-Section (2) to Section 14 of the Limitation Act

    extensively and in detail. The previous proceeding in the instant case is

    proceeding initiated under Section 9 of IBC which was dismissed by

    jurisdictional NCLT vide order dated September 10, 2023 with the

    observation already quoted above and the ground of dismissal of the IBC

    proceeding was a pre-existing dispute having been existed between the

    parties.

    26. While enacting IBC the legislature in its wisdom has provided that an

    application for initiation of Insolvency Resolution Process by an operational

    creditor should be in accordance with provision laid down under Section 9 of

    IBC. Section 9 (5) (1) (d) of IBC, provides that the jurisdictional adjudicating

    authority is obliged and it shall reject the application by an operational

    In CS-COM/171/2025
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    10

    creditor within the time frame stipulated, if notice of dispute has been

    received by the operational creditor and there is no record of dispute in the

    information utility. Thus, it is a time bound obligation caste upon the

    adjudicating authority under IBC.

    27. Limitation Act has been enacted to consolidate and amend the Law of

    Limitation of suits and other proceedings and for purposes related thereto.

    Limitation Act applies to ‘suits and other proceedings and for purposes

    connected therewith’, as would be evident from the preamble of this statute.

    The expression other proceedings are necessarily proceedings arising out of

    and/or related to suit. The law is well settled that when under a specific

    statute, a specific provision for period of limitation is mentioned, in that case

    the period of limitation for a proceeding under that statute should be

    governed by the provisions contained in that statute. However, various

    statutes have adapted and borrowed the provisions of Limitation Act by

    incorporation or reference, either in its entirety or to a limited extent, for

    these such borrowed provision would apply to any proceeding which is

    initiated under such statute.

    28. On a plain reading of IBC it appears and is evident that the law framers was

    not intended to give a new lease of life to debts which were already time

    barred. Section 238-A of IBC inter alia provides that the provisions of the

    Limitation Act, 1963 shall, as far as may be, apply to the proceeding or

    appeal before the adjudicating authority and other relevant for a mentioned

    thereunder. The expression used under the said provision of IBC is

    significant. It says that the provisions of the Limitation

    Act shall apply to the proceedings, as far as may be. Section 238-A of IBC

    In CS-COM/171/2025
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    11

    imposes an overriding effect to IBC, notwithstanding anything inconsistent

    therewith contained in any other law, for the time being in force, or any

    instrument having effect, by virtue of any such law. There is no specific

    period of limitation prescribed under the Limitation Act, 1963 for an

    application filed under IBC. Consequently Article 137 of the Limitation Act

    applies. It is also noteworthy and significant that IBC does not excluded the

    application of Limitation Act, 1963 to proceedings under IBC, but shall be

    applicable as far as may be to extent feasible.

    29. Section 14 of the Limitation Act is to be read as a whole and in a liberal

    manner, as far as possible, to advance the cause of justice. A conjoint,

    meaningful and harmonious reading of the three sub-Sections read with the

    explanations under Section 14 of the Limitation Act, 1963, this Court is of

    the firm and considered view that an applicant who has prosecuted another

    civil proceeding, which is a previous one, with due diligence, before a forum

    which is unable to entertain the same on account of defect of jurisdiction or

    any other cause of like nature, is entitled to exclusion of the time during

    which the applicant had been prosecuting such previous proceeding, in

    computing the period of Limitation. The substantive provisions of sub-

    Sections (1), (2)and(3) of Section 14 of the Limitation Act do not provide that

    Section 14 can only be invoked on termination of previous proceeding,

    prosecuted in good faith. The explanation provided in a statute under a

    particular Section must be read so as to harmonise with and remove

    ambiguity, if any, in the main Section embodied under the statute. The

    explanation should not be construed or understood to widen the scope and

    ambit of the main Section. Neither an explanation to a Section can be

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    12

    understood and construed to be in contrary to the provision laid down under

    the main Section or as substantive provision.

    30. The Hon’ble Supreme Court In the matter of: Sesh Nath Singh (Supra)

    had observed as under quote:-

    “79. In our considered view, Explanation (a) cannot be
    construed in a narrow pedantic manner to mean that
    Section 14 can never be invoked until and unless the earlier
    proceedings have actually been terminated for want of
    jurisdiction or other cause of such nature. Explanation (a),
    which is clarificatory, only restricts the period of exclusion
    to the period between the date of initiation and the date of
    termination. An applicant cannot claim any further
    exclusion.

    80. To cite an example, if a party were to file a suit in a
    wrong forum, to enforce payment of money secured by a
    mortgage or charge upon immovable property, for which the
    prescribed period of limitation is twelve years, after expiry
    of three years from the date of accrual of the right to sue,
    and then file an application under Section 7 IBC after
    dismissal of the suit for want of jurisdiction, that
    application under Section 7 IBC would be time-barred since
    such party would not be entitled to exclusion of any period
    of time beyond the date of institution and date of
    termination of the earlier proceeding. If after exclusion of
    the time between the initiation and termination of the
    proceedings instituted bona fide and in good faith and
    prosecuted with due diligence, an application was still
    beyond three years, Section 14 would not help save
    limitation.

    81. To cite another example, if civil proceedings were
    initiated in a wrong forum in good faith and prosecuted
    with due diligence, but after the proceedings ended, time
    was wasted by making frivolous, meritless applications, the
    applicant would only be entitled to exclusion of time from
    the date of initiation till the end of the proceedings initiated
    in good faith and bona fide and pursued diligently, and no
    more. The applicant would not be entitled to exclusion of
    any further time spent in pursuing frivolous further
    proceedings, or otherwise.

    82. To sum up, Section 14 excludes the time spent in
    proceeding in a wrong forum, which is unable to entertain
    the proceedings for want of jurisdiction, or other such
    cause. Where such proceedings have ended, the outer limit
    to claim exclusion under Section 14 would be the date on
    which the proceedings ended.”

    In CS-COM/171/2025
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    31. The important expression used under sub-Section (1) to Section 14

    of the Limitation Act is “from defect of jurisdiction or other cause of a

    like nature.” The law is well-settled that Section 14 of the Limitation Act

    must receive liberal interpretation. Section 14 of the Limitation Act is wide

    in its application. The same cannot be restricted only for application two

    cases of defect of jurisdiction but the same is also applicable two cases

    where the previous proceeding has failed on account of other cause of like

    nature. Therefore, even if there may not be any defect of jurisdiction but the

    previous proceeding may fail without adjudicating its merits but on any

    other reasons for other causes of like nature. On a meaningful reading of

    the said expression in the light of the letters and spirit of Section 14 of the

    Limitation Act, this Court is also of the firm and considered view that, such

    expression has been used not only to cover the jurisdictional defects but also

    any other deficiency which operates as a jurisdictional bar for the

    Adjudicating Authority/Court/Tribunal from entertaining or accepting the

    previous proceeding without going into the merit of such proceeding.

    Therefore, in the order of dismissal of NCLT dismissing the Section 9

    proceeding filed under IBC dated September 10, 2023, when shows that

    the dismissal was at the threshold on the ground of pre-existing dispute,

    which is a jurisdictional bar under the relevant statute, IBC, to entertain the

    proceeding, such dismissal was not on merit and should be construed within

    the meaning and expression ‘other cause of like nature’ used under sub-

    Section (1) to Section 14 of the Limitation Act.

    32. The Hon’ble Supreme Court In the matter of: M. P. Steel

    Corporation (Supra) had observed as under:-

    In CS-COM/171/2025
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    14

    “50. Section 14 has been interpreted by this Court
    extremely liberally inasmuch as it is a provision which
    furthers the cause of justice. Thus, in Union of India v. West
    Coast Paper Mills Ltd.32
    , this Court held: (SCC p. 464, para

    14)
    “14…. In the submission of the learned Senior
    Counsel, filing of civil writ petition claiming money relief
    cannot be said to be a proceeding instituted in good faith
    and secondly, dismissal of writ petition on the ground that
    it was not an appropriate remedy for seeking money relief
    cannot be said to be ‘defect of jurisdiction or other cause of
    a like nature’ within the meaning of Section 14 of the
    Limitation Act. It is true that the writ petition was not
    dismissed by the High Court on the ground of defect of
    jurisdiction. However, Section 14 of the Limitation Act is
    wide in its application, inasmuch as it is not confined in its
    applicability only to cases of defect of jurisdiction but it is
    applicable also to cases where the prior proceedings have
    failed on account of other causes of like nature. The
    expression ‘other cause of like nature’ came up for the
    consideration of this Court in Roshanlal Kuthalia v. R.B.
    Mohan Singh Oberoi
    and it was held that Section 14 of the
    Limitation Act is wide enough to cover such cases where the
    defects are not merely jurisdictional strictly so called but
    others more or less neighbours to such deficiencies. Any
    circumstance, legal or factual, which inhibits entertainment
    or consideration by the court of the dispute on the merits
    comes within the scope of the section and a liberal touch
    must inform the interpretation of the Limitation Act which
    deprives the remedy of one who has a right.”

    51. Similarly, in India Electric Works Lid. v. James
    Mantosh, this Court held: (SCC pp. 28-29, para 7) “7. It is
    well settled that although all questions of limitation must be
    decided by the provisions of the Act and the courts cannot
    travel beyond them the words ‘or other cause of a like
    nature’ must be construed liberally. Some clue is furnished
    with regard to the intention of the legislature by
    Explanation III in Section 14(2). Before the enactment of the
    Act in 1908, there was a conflict amongst the High Courts
    on the question whether misjoinder and non-joinder were
    defects which were covered by the words ‘or other cause of
    a like nature’. It was to set at rest this conflict that
    Explanation III was added. An extended meaning was thus
    given to these words. Strictly speaking misjoinder or non-
    joinder of parties could hardly be regarded as a defect of
    jurisdiction or something similar or analogous to it.”

    52. As has been already noticed, Sarathy case has also
    held that the court referred to in Section 14 would include a
    quasi-judicial tribunal. There appears to be no reason for
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    15

    limiting the reach of the expression “prosecuting with due
    diligence” to institution of a proceeding alone and not to the
    date on which the cause of action for such proceeding might
    arise in the case of appellate or revisional proceedings from
    original proceedings which prove to be abortive.
    Explanation (a) to Section 14 was only meant to clarify that
    the day on which a proceeding is instituted and the day on
    which it ends are also to be counted for the purposes of
    Section 14. This does not lead to the conclusion that the
    period from the cause of action to the institution of such
    proceeding should be left out. In fact, as has been noticed
    above, the Explanation expands the scope of Section 14 by
    liberalising it. Thus, under Explanation (b) a person
    resisting an appeal is also deemed to be prosecuting a
    proceeding. But for Explanation (b), on a literal reading of
    Section 14, if a person has won in the first round of
    litigation and an appeal is filed by his opponent, the period
    of such appeal would not be liable to be excluded under the
    section, leading to an absurd result. That is why a plaintiff
    or an applicant resisting an appeal filed by a defendant
    shall also be deemed to prosecute a proceeding so that the
    time taken in the appeal can also be the subject-matter of
    exclusion under Section 14. Equally, Explanation (c) which
    deems misjoinder of parties or a cause of action to be a
    cause of a like nature with defect of jurisdiction expands
    the scope of the section. We have already noticed that the
    India Electric Works Ltd. judgment has held that strictly
    speaking misjoinder of parties or of causes of action can
    hardly be regarded as a defect of jurisdiction or something
    similar to it. Therefore properly construed, Explanation (a)
    also confers a benefit and does not by a side wind seek to
    take away any other benefit that a purposive reading of
    Section 14 might give. We, therefore, agree with the
    decision of the Madhya Pradesh High Court that the period
    from the cause of action till the institution of appellate or
    revisional proceedings from original proceedings which
    prove to be abortive are also liable to exclusion under the
    section. The view of the Andhra Pradesh High Court is too
    broadly stated. The period prior to institution of the
    initiation of any abortive proceeding cannot be excluded for
    the simple reason that Section 14 does not enable a litigant
    to get a benefit beyond what is contemplated by the section
    that is to put the litigant in the same position as if the
    abortive proceeding had never taken place.”

    33. The law is also settled that the expression Court used in Section 14(1)

    of the Limitation Act includes Tribunals, with its extended meaning, as held

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    16

    and interpreted in plethora of judgments of various Courts including the

    Hon’ble Supreme Court, as already referred to above. One significant test, as

    enumerated under Section 14(1) of the Limitation Act, is that the subsequent

    proceeding, the suit, must relate to the same matter in issue with that of the

    previous proceeding.

    34. On a meaningful and conjoint reading of Section 8 and 9 of IBC, it

    appears to this Court that the only pre-condition for a proceeding under

    Section 9 of IBC is occurrence of default. On a meaningful reading of the

    statements made in the instant plaint, it appears to this Court that the

    plaintiff seeks to sue the defendants claiming a money decree on occurrence

    of default. Thus, the core issue in the instant suit would be whether there

    has been any occurrence of default on the part of the defendants in

    paying off the dues of the plaintiff, as claimed in the plaint. The issue

    in the instant suit is therefore the same matter in issue in the previously

    instituted proceeding under Section 9 of IBC.

    35. In the matter of: HPCL Bio-Fuels Limited (supra) the judgment was

    rendered under Section 14(2) of the Limitation Act scenario, where the

    subsequent proceeding was an application filed under Section 11 of the

    Arbitration Act. The reliefs claimed under Section 11 of the Arbitration Act

    were not same as that of the previous proceeding filed under Section 9 of

    IBC. Hence, the ratio laid down in the said judgment would not apply in the

    facts and circumstances of this case.

    36. In as much as, the record shows that since the right accrued in favour

    of the plaintiff, the plaintiff was diligent and had filed the said Section 9

    proceeding before the jurisdictional NCLT. The said previous proceeding was

    In CS-COM/171/2025
    A.R.,J.

    17

    dismissed by the jurisdictional NCLT on the jurisdictional ground, as already

    discussed above. This Court finds that there was neither any lack of

    diligence nor was any negligence on the part of the plaintiff in pursuing its

    remedy, at any point of time. Immediately after the order of dismissal

    passed by the NCLT, the plaintiff had instituted the instant suit within a

    span of less than three months.

    37. In view of the foregoing reasons and discussions, this Court holds that

    the instant plaint has successfully qualified the tests laid down under sub-

    Section (1) to Section 14 of the Limitation Act, 1963. The relevant period

    during which the said proceeding under Section 9 of IBC was pending stands

    excluded in aid of institution of the instant civil suit.

    38. Resultantly, the instant plaint being C.S. (COM) 171/2025 stands

    admitted, subject to scrutiny by the department.

    (Aniruddha Roy, J.)

    In CS-COM/171/2025
    A.R.,J.



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