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2020 (1) TMI 678 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate debtor failed to make repayment - time limitation - Section 7 of the I&B code - HELD THAT:- In the present case, there is nothing on record to suggest that the ‘Corporate Debtor’ acknowledged the debt within three years and agreed to pay the debt. The application moved by ‘Corporate Debtor’ to restructure the debt or payment of the interest, does not amount to acknowledgement of debt. There is nothing on record to suggest that the ‘Corporate Debtor’ or its authorized representative by its signature has accepted or acknowledged the debt within three years from the date of default or from the date when the account was declared NPA, i.e., 29th September, 2015 - Any dues payable, even if acknowledged after three years of limitation period, cannot be taken into consideration for the purpose of deriving conclusion under Section 18 of the Limitation Act. Admittedly, the ‘Corporate Debtor’ defaulted in making payments on 11th June, 2015 and the Dena Bank declared the account as NPA on 29th September, 2015. Therefore, the application filed under Section 7 of the I&B Code by the Bank is barred by limitation - the application under Section 7 of the I&B Code was filed for the purpose of execution of the Decree passed by the Debts Recovery Tribunal in favour of the ‘Financial Creditor’ for the purpose other than for the resolution of insolvency, or liquidation and is covered by Section 65. The application under Section 7 of the I&B code filed by the Bank of India Limited. is dismissed - ‘Corporate Debtor’ – Poonam Drums and Containers Private Limited is released from the rigor of the ‘Corporate Insolvency Resolution Process’ - matter is remitted to the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench to decide the fee and cost of the ‘Corporate Insolvency Resolution Process’ as incurred by the ‘Resolution Professional, which is to be borne and paid by the Bank of India Limited.
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