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2020 (8) TMI 381 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Period of limitation after default - Corporate debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- Apparently, dispute regarding the assignment is being contested in City Civil Court and in summary proceeding before the Adjudicating Authority when the Financial Creditor and bank are supporting each other, it is not possible for the Adjudicating Authority to decide the dispute which would be a matter of Suit - Before us, not much stress was laid on this aspect and we do not find any reason to differ from the Adjudicating Authority on this count. Time Limitation - HELD THAT:- The date of default is stated to be 31st December, 2013 and NPA was declared on 30th March, 2014. The Adjudicating Authority found that the claim was within limitation - the Adjudicating Authority relied on the balance sheet to hold that there was acknowledgement and thus, the claim was within limitation. Whether in the Balance Sheet which is being relied on, what is seen in the statement and if the same could be read as acknowledgement? - HELD THAT:- The statement recorded by the Auditor with regard to the pending litigation in the facts of the present matter, we find, cannot be read as an acknowledgement by Company under Section 18 of the Limitation Act. The Adjudicating Authority did not go into the particulars. In present matter, we are not deliberating whether entry in Balance Sheet can be termed Acknowledgement in law - In our view, even if we are to consider that contents in Balance Sheet could be read as acknowledgment even then if we read the contents in balance sheet in the matter, for reasons stated above, we do not find that the Corporate Debtor acknowledged as such the liability to pay the alleged outstanding debt. It is stated that the Application under Section 19(4) of SARFAESI Act filed by the Bank on 29th June, 2015 is still pending adjudication before DRT-3, Kolkata. The default dated 31.12.2013 which was declared NPA on 30th March, 2014, was time barred for the purpose of filing of Application under Section 7 of IBC on 31st October, 2018. The Application thus should not have been admitted - application dismissed.
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