Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2021 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 477 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - time limitation - HELD THAT:- The effect of Section 18 of the Limitation Act, 1963, is that an acknowledgement of liability in respect of a right made in writing and signed by the Debtor before expiration of the prescribed period for a Suit or Application would result in a fresh period of Limitation being computed from the time when acknowledgement was so signed. It is seen from the Ledger Account reproduced in para 7 read with Annexure-6, that an amount of ₹ 32,27,708/- was due and liable to be paid by the Respondent to the Appellant. It is relevant to note that the part payment was made on 23.05.2017, the email sent by the ‘Corporate Debtor’ is dated 10.05.2018 and the Application was filed in November, 2019 well within the Limitation period - It is significant to mention at this stage that on 23.02.2019, the Appellant issued a Demand Notice dated 25.02.2019 under Section 8 of the Code which was delivered to the ‘Corporate Debtor’ on 01.03.2019 but there was no Reply. The part payment made on 17.05.2017 read together with the Ledger Account given by the ‘Corporate Debtor’ on 10.05.2018 vide email and also the Ledger Account on Annexure A-6, we are of the considered view that the right to sue has accrued. Section 18 of the Limitation Act, 1963 posits that a fresh period of Limitation shall be computed from the date when the party against whom the right is claimed acknowledges its liability - the fresh period of Limitation is required to be computed from the date of acknowledgement of debt by the principal borrower and part payment made on 17.05.2017 read with the Ledger Account and the email dated 10.05.2018 evidences that the Application filed on 2019 is well within the period of Limitation. It is pertinent to mention that the ‘Corporate Debtor’ has not replied to the Demand Notice issued under Section 8 of the Code. Appeal allowed - decided in favor of appellant.
|