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The Supreme Court in Shankar Khandelwal v. Omkara Asset Reconstruction Pvt. Ltd. and Anr. [Civil Appeal No (s). 13158-13159 of 2025] addressed the central question of whether an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by a secured financial creditor was within the period of limitation. The Court held that the limitation period commences from the date the account is classified as a Non-Performing Asset, being the date of default, and not from any subsequent proceeding initiated for recovery. Crucially, the Court ruled that an Interim Resolution Professional’s admission of a claim during CIRP is merely an administrative function under Section 18 of the Code and does not constitute an acknowledgment of liability under Section 18 of the Limitation Act, 1963. It is akin to a mere recital or reference to a debt and therefore cannot extend the period of limitation.