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2021 (4) TMI 574 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditor - amount paid towards interest as on 31.03.2019 - time limitation complied or not for amount paid towards interest - applicability of section 18(1)& 19 of Limitation Act, 1963 - HELD THAT:- In the present case evidently there has been payment of TDS on interest on 31.03.2014, an amount of ₹ 60,493/- was paid on 31.03.2017, an amount of ₹ 2,40,000/- was paid towards TDS on interest on 31.03.2018, and finally as last tranche of payment of ₹ 60,493/- as TDS on interest was made on 31.03.2019. If the date of default is construed as 1.01.2015, then the three year limitation would end on 01.01.2018, but since the interest was made within three years of limitation period and such payments continued to be made by the Corporate Debtor intermittently and the last tranche was made on 31.03.2019, this bench is of the considered view that the period of limitation has been extended as envisaged under Sec 18 &Sec.19 of the Limitation Act, 1963 - Perusal of Section 19 shows that where payment is made on account of debt or interest before expiration of the prescribed period by the person liable to pay, fresh period of limitation of time can be computed when the payments are made. The date of NPA will not shift, it will remain the foundation of debt and period of limitation gets triggered from that date. But if the prescribed period is computed in accordance with the Limitation Act, section 18 and 19 are attracted. The Corporate Debtor failed to pay the amounts due as on 31.12.2014 and again on 31.03.2019 on the date of payment of TDS on interest by the Corporate Debtor,the limitation for filing a petition therefore starts on 31.03.2019 and extends for period of three years from 31.03.2019.Therefore, the petitioner’s claim under Sec 3(6)(a) of the Code is established, further there is clear evidence of debt and default of non-payment of monies by Corporate Debtor - an investment is payable on demand. Payment of TDS on interest is not only an acknowledgment of debt which constitutes a confirmation of debt by Corporate Debtor that is liable to pay the principal sum borrowed and further extends the limitation of liability from the date of payment of last tranche of monies to the Income Tax department as reflected in Form 26 AS. Thus, the essential ingredients of the Section 7 of IBC are satisfied and the Petition deserves admission. Application admitted - moratorium declared.
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