In a recent ruling, the National Company Law Tribunal (NCLT) Mumbai Bench has held that the 12‑year limitation period under Article 62 of the Limitation Act for mortgage enforcement does not apply to claims filed in a Corporate Insolvency Resolution Process (CIRP).
The case arose from the rejection of BSEL Algo’s claim of ₹22.94 crore by the Resolution Professional, who had declined admission on grounds of limitation. The claim was based on funds advanced under a 2006 tripartite development agreement and secured by a registered mortgage deed dated 25.04.2014.
Although partial repayments were made until November 2018, defaults followed. When BSEL filed its claim in January 2025, the Resolution Professional…