The NCLT has held that a DRT Recovery Certificate restarts the limitation period for filing a Corporate Insolvency Resolution Process (CIRP), admitting a ₹17.54 crore plea against Sunbeam Dealers.
NCLT Admission of CIRP Request Based on DRT Certificate
The National Company Law Tribunal (NCLT) has ruled that a Debt Recovery Tribunal (DRT) Recovery Certificate provides a new limitation period for initiating Corporate Insolvency Resolution Process (CIRP). This decision was pivotal in admitting a plea against Sunbeam Dealers involving ₹17.54 crore.
The court underscored the importance of DRT Recovery Certificates in reviving limitation periods, thereby allowing creditors to initiate necessary proceedings to recover dues. This case signifies the court’s support for mechanisms enabling timely financial recovery and recognition of creditor rights.
Practitioners should observe this decision as it reinforces the utility of DRT Certificates in insolvency proceedings, impacting the timing and strategy in filing CIRPs effectively.
Citations
- NCLT Order (2026) NCLT 1446335
