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2021 (9) TMI 467 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - Financial Debt - Non-performing asset - existence of debt and dispute or not - time limitation - HELD THAT:- A plea of limitation is a mixed question of law and fact. It cannot be decided as an abstract principle of law devoid from facts as in every case, the starting point of limitation is entirely a question of fact. Time Limitation - HELD THAT:- In the instant case, the term loan was serviced till June 2017. The Application was filed on 21.12.2019. Further, an OTS Agreement was entered into by the parties and the promise to pay the amount within the time frame can safely be construed as the existence of a jural relationship between the parties constituting an ‘acknowledgement of debt’. Hence, Section 7 Application was not barred by Limitation as the facts substantiate that the period of limitation of three years as provided under Article 137 of the Limitation Act, 1963 is satisfied. In the interest of justice and taking into consideration the fact that in this pandemic, the travel dependent sector, which is the core business of the ‘Corporate Debtor’, has more than suffered the negative impact of the crisis, this opportunity is being given to settle which could help mitigate the blow - the ‘Corporate Debtor’ has settled the matter with Dhanlaxmi Bank, the Applicant of Section 7 Application which was disposed of as withdrawn based on the settlement terms on 06.01.2020, during which period of pendency, this Section 7 Application was filed on 27.12.2019 against the same ‘Corporate Debtor’. The Admission of Section 7 Application is set aside - this Appeal is disposed off with a direction that if the ‘Corporate Debtor’ fails to settle in 6 months time from the date of this Order, the Respondent Bank is at liberty to take appropriate steps.
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