Section 14 of the Limitation Act applies to applications under section 7 IBC

The Supreme Court has held that in an application under Section 7 of the Insolvency and Bankruptcy Code, the applicant can claim the benefit of Section 14 of the Limitation Act, in respect of proceedings under the SARFAESI Act. Section 14 of the Limitation Act 1963 allows for exclusion from the limitation period the time spent litigating before wrong forum. A bench comprising Justices Indira Banerjee and Hemant Gupta held that Section 14 applies to an application under Section 7 of the IBC and that there is no rule that the exclusion of time under Section 14 is available, only after the proceedings before the wrong forum terminate. The bench also held that SAFAESI proceedings are ‘civil proceedings’ for the purposes of Section 14 of the Limitation Act. The judgment came in the case Sesh Nath Singh Vs. Baidyabati Sheoraphuli Co-operative Bank Ltd.