Time in Voluntary Mediation Cannot Extend Limitation Under Section 14 of Limitation Act: NCLT New Delhi

The National Company Law Tribunal, New Delhi Bench, comprising Manni S. Shanmuga Sundaram and Atul Chaturvedi, held that the time spent in voluntary pre-institution mediation cannot be excluded when computing limitation under Section 14 of the Limitation Act, 1963.

The Tribunal clarified that Section 14 applies only to proceedings pursued before a forum lacking jurisdiction or under a bona fide mistake, and voluntary mediation does not qualify.

The bench also cited the IBBI Expert Committee Report, noting that mediation before filing an insolvency application falls outside the Insolvency and Bankruptcy Code’s framework.

Accordingly, the insolvency plea was held barred by limitation and disposed of.

[Shiva Asphaltic Products Pvt. Ltd. v Atlas Constructions Pvt. Ltd.]