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2020 (9) TMI 1265 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - Time Limitation - acknowledgement of the debt in the balance sheets of the corporate debtor - HELD THAT:- It is not in dispute that in this case the loan account was declared to be an NPA on 10.04.2014. This proceeding was filed on 19.09.2018. So it appears that it was filed beyond the period of three years from the date on which the right to apply was accrued to the Bank. Having noted so, we have to consider whether the period of Limitation said to be extended because the corporate debtor's balance sheets show that the debt is still to be payable. In case of 'V. Padmakumar' [2020 (3) TMI 1244 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI], Hon. NCLAT dealt with this aspect and held that If the argument is accepted that the Balance Sheet / Annual Return of the 'Corporate Debtor' amounts to acknowledgement under Section 18 of the Limitation Act, 1963 then in such case, it is to be held that no limitation would be applicable because every year, it is mandatory for the 'Corporate Debtor' to file Balance Sheet/ Annual Return, which is not the law." Thus, the acknowledgement of the debt in the balance sheets of the corporate debtor does not help the financial creditors to maintain this time barred application. OTS Proposal submitted by the Corporate Debtor - HELD THAT:- Admittedly it was submitted to the bank on 18/9/2017 i.e., beyond a period of three years from the date of default. Hence it does not bring the claim of the financial creditor within limitation. In view of the above facts, it is not felt necessary to enter into resolving the controversy whether the OTS proposal given by the corporate debtor without prejudice to its rights to contest the claim can be said to be acknowledgement of the debt or not? In this case also the debt of default is 10.06.2014 (i.e., the date of NPA). This application under Section 7 IBC is filed on 19.09.2018. Hence it is filed beyond the period of Limitation. Application dismissed.
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