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2021 (8) TMI 1347 - Tri - Insolvency and BankruptcyMaintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - disbursement of amount of loan - date of classification of NPA - existence of debt and dispute or not - HELD THAT:- It is not in dispute that the Financial Creditor is claiming extension of limitation period on account of OTS proposal given by the Corporate Debtor before the expiry of original period of three years from the date of such classification. As far as aspect of extension of limitation is concerned, it is now settled that the provisions of Section 18 of Limitation Act, 1963 are applicable to proceedings under IBC, 2016. This position has also been accepted by the Corporate Debtor as well. However, the Corporate Debtor has taken pleas that OTS proposal dated 06.09.2018 could not be construed as acknowledgement for the purpose of extension of limitation as it is “without prejudice” and also contains a categorical statement that this proposal could not be construed as acceptance of dues by the Corporate Debtor. From the perusal of provisions of Section 18(1) of Limitation Act, 1963, it transpires that a fresh period of limitation in respect of live claim i.e. enforceable liability to pay subsisting as on the date of acknowledgement is obtained to initiate legal proceedings - In various judicial decisions, it has been held that provisions of Section 18 of Limitation Act, 1963 have to be construed liberally so that party having legal rights do not suffer by an unreasonable approach of the party liable to pay. It is also to be noted that explanation (a) defines that what could constitute as an acknowledgement of liability given in writing. In the present case, OTS proposal has been given in writing whereby the Corporate Debtor has requested to consider its position and accept a particular sum as full and final settlement of its liability towards the applicant-financial creditor. As per explanation (a), even a refusal to pay may amount to acknowledgement whereas in the present case a specific amount has been offered which by itself is sufficient to bring such proposal into the category of acknowledgement. Authorisation of person who filed this application - HELD THAT:- The Financial Creditor is a scheduled Bank and has got define procedures for delegating authorities to various categories of officers in a structured manner. The person, who has filed this application, is holding the post of Assistant General Manager and has been authorised by the officer of the rank of General Manager - In case of economic laws where health of national economy depends upon the speedy recovery of the money as well as to protect the general public depositors, such technical pleas need not to be given undue weightage which is being sought herein. Hence, the same is rejected. No material has been brought on record to show that any disciplinary proceedings are pending against such proposed person - Petition admitted - moratorium delcared.
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