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2020 (8) TMI 395 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - time limitation - impugned order assailed on the ground that the debt was payable in law as the same had been acknowledged by the ‘Corporate Debtor’ in its balance-sheet of financial years commencing from 2010 to 2016 which for purpose of Section 18 of the Limitation Act amounted to acknowledgement of liability on the part of the Respondent (Corporate Debtor) - HELD THAT:- The determination of the claim of the proceedings before the DRT would neither extend the time nor exclude the period of limitation. The limitation commenced from the date of default reckoned on the basis of classification of Corporate Debtor’s account as NPA would not admit of any extension or exclusion on the basis of pursuit of a remedy under the ‘SARFAESI Act, 2002 or in a recovery proceedings before the DRT. The date of default computed with effect from the date of account of the ‘Corporate Debtor’ being classified as NPA would not shift as in the instant case proceedings taken before the DRT for recovery of the ‘financial debt’ would not be a proceeding being pursued before a wrong forum nor would that be a continuation of the cause of action. The argument advanced on behalf of the Appellant to find fault with the impugned order on the ground of limitation being extended on account of the financial debt being reflected in the balance-sheet/annual return of the Corporate Debtor for the relevant period has to be repelled - the default in respect of the ‘financial debt’ admittedly declared as NPA occurred on 20th February, 2010 and the debt was barred by limitation - Appeal dismissed.
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