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2022 (5) TMI 349 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - NPA - existence of debt and dispute or not - date of default - application barred by time limitation or not - HELD THAT:- The letter dated 02/12/2015 shows that the dues were classified as NPA on 30/09/2014 and the Section 7 Application was filed on 24/04/2018. Admittedly, there was communication and correspondence between the parties wherein several proposals for Restructuring an OTS were attempted. The Restructuring Proposals dated 08/10/2014, 09/10/2014 and 02/12/2014 are on record apart from the OTS Proposals made between the parties on 03/03/2018, 13/03/2018, 11/06/2018, 13/06/2018 and 07/11/2018 and thereafter - It is significant to mention that the Appellant does not deny this acknowledgment. It is only their case that as proposal for Restructuring was pending, such a letter of acknowledgement does not construe an acknowledgement in the legal sense. In the instant case, the issue raised regarding Limitation is not solely whether the communication initiated between the parties with a view to restructure the loan/OTS Proposals construes ‘acknowledgement of debt’, but whether the debt acknowledged vide letter dated 19/12/2015 and signed by the Appellants and further whether the amounts reflected in the Balance Sheets tantamounts to ‘acknowledgement’ as defined under Section 18 of the Limitation Act, 1963. Having regard to the fact that the date of NPA is 30/09/2014, there is an ‘acknowledgement of debt’ dated 19/12/2015 and the Financial Statements of the year ending 2016 evidence the loans taken by the ‘Corporate Debtor’, apart from the various Restructuring/OTS Proposals advanced between the parties, indicating the existence of a jural relationship between them, the ratio of the Hon’ble Supreme Court in ‘Dena Bank’ [2021 (8) TMI 315 - SUPREME COURT] is squarely applicable to the facts of this case and hence we hold that the Application filed under Section 7 of the Code is well within the period of Limitation. Appeal dismissed.
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