NCLAT Chennai Rules Default Date Under IBC Must Be Definite and Not Variable; Limitation Runs From Date of Judicial Determination or Admitted Default
The NCLAT Chennai has clarified that for proceedings under Sections 7, 9, or 95 of the Insolvency and Bankruptcy Code, the date of default must be definite and cannot be varied absent a specific agreement. The period of limitation is reckoned from the date of judicial determination or the admitted default, and not extended by theories of continuing guarantee unless expressly provided.
