Petition for insolvency gets time-barred if filed after 3 years: NCLAT

A former managing director of a Dutch company had moved tribunal seeking payment of salary arrears from its Indian arm.

The National Company Law Appellate Tribunal (NCLAT) has set aside an order by the National Company Law Tribunal (NCLT) and held that corporate insolvency proceedings can’t be initiated on the payment of salary arrears and other remuneration as they are time-barred.

NCLAT said this is in the matter of Omega Laser Products B.V, a Dutch company, and a shareholder of its Indian arm. A former managing director(MD) of the company had moved the NCLT seeking payment of salary arrears from the Indian arm of the Company.

The appellate tribunal ruled that the former MD’s plea would be time-barred by limitation