SABARMATI GAS LIMITED vs SHAH ALLOYS LIMITED

The Supreme Court examined whether the period of limitation for an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, can exclude the suspension period of the operational creditor’s rights under Section 22(1) of the SICA, and whether a pre-existing dispute can justify dismissing such an application. The court analyzed the interplay between IBC and SICA provisions, emphasizing the importance of the limitation period and dispute resolution. The judgment clarified the legal position on exclusion of suspension periods and the nature of disputes that can bar insolvency proceedings, ultimately providing guidance on procedural and substantive issues in insolvency law.