SC sets aside insolvency of Jignesh Shah's firm La-Fin Financial Services

Apex court says petition moved by IL&FS Financial Services filed after three years, falls outside limitation period

The Supreme Court on Wednesday set aside an order of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT), thereby quashing the insolvency proceedings against Jignesh Shah and Pushpa Shah’s La-Fin Financial Services.

A three judge-Bench of the apex court said that since the winding up petition filed by IL&FS Financial Services was more than three years after the debt had occurred, it had to be struck down since it did not pass the muster of time limitation mentioned in Article 137 of the Limitation Act.

The Limitation Act sets deadlines for different cases within which