Legal Analysis: Shankar Khandelwal vs. Omkara Asset Reconstruction Pvt Ltd & Anr

Citation: 2026 INSC 429
Court: Supreme Court of India
Bench: Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe (Division Bench)
Judgment Author: Justice Alok Aradhe
Date of Decision: April 29, 2026
Nature of Judgment: Civil Appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016 against order of the National Company Law Appellate Tribunal (NCLAT) affirming admission of Section 7 petition.

Synopsis of the Judgment

The appellant (erstwhile director of the corporate debtors) challenged the admission of Section 7 petitions filed by a secured financial creditor (Omkara Asset Reconstruction Pvt. Ltd.) on the ground of limitation. The loans were sanctioned in September 2014, and the accounts were declared NPA on 06.12.2016. The Section 7 petitions were filed on 23.09.2024. The NCLT and NCLAT held that the petitions were within limitation, relying on (i) the CIRP of DHFL (original lender) from 03.12.2019 to 07.06.2021, (ii) the suo motu COVID‑19 exclusion of limitation from 15.03.2020 to 28.02.2022 (extended by 90 days), and (iii) the admission of debt by the Interim Resolution Professional (IRP) in the first CIRP of the corporate debtors. The Supreme Court reversed, holding that (a) limitation for a Section 7 petition commences from the date of default/NPA classification (06.12.2016); (b) after excluding the periods of moratorium under Section 60(6) of the IBC and the COVID‑19 exclusion, only three days remained from 29.07.2024, which expired on 01.08.2024; the petition filed on 23.09.2024 was time‑barred; and (c) admission of a claim by an IRP/RP is merely an administrative act under Section 18 of the IBC and does not constitute an acknowledgment of liability under Section 18 of the Limitation Act, 1963. The appeals were allowed, and the Section 7 petitions were dismissed as barred by limitation.

1. Basic Information of the Judgment

Field Details Case Title Shankar Khandelwal vs. Omkara Asset Reconstruction Pvt Ltd & Anr.Civil Appeal Nos.13158-13159 of 2025 Bench Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe Judgment Author Justice Alok Aradhe Date of Decision April 29, 2026 Citation 2026 INSC 429 Appeal From Judgment dated 15.10.2025 of NCLAT, Principal Bench, New Delhi, affirming order dated 22.01.2025 of NCLT (Mumbai Bench)

2. Legal Framework

Laws and Provisions Involved:

• Insolvency and Bankruptcy Code, 2016 (IBC): Section 7 (initiation of corporate insolvency resolution process by financial creditor), Section 60(6) (exclusion of moratorium period in computing limitation), Section 18 (duties of interim resolution professional – collation and admission of claims), Section 62 (appeal to Supreme Court).

• Limitation Act, 1963: Article 137 (period of limitation for any other application – three years from when the right to apply accrues), Section 18 (effect of acknowledgment in writing – extends limitation).

• Securitisation and Reco

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