Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2022 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 324 - AT - Insolvency and BankruptcyInitiation of CIRP - Period of limitation - Date of default / NPA is 14 years old - NCLT admitted the application - ongoing default of the corporate debtor under the NCD Facility and suspension of the legal proceedings under SICA and acknowledgment made under the Balance Sheet - Application has been filed after 14 years from the date of default occurred and hence it is hopelessly time barred in view of the provisions of Limitation Act, 1963 - HELD THAT:- It is pertinent to mention that the Respondent continuously in all its Balance Sheets from the year ending 2004-05 till 2016-17 has disclosed and acknowledged the outstanding liability owed by the Respondent to the Appellant. Hence the admission and disclosure of liability in the Balance Sheet of the Corporate Debtor is to be treated as an acknowledgement under Section 18 of the Limitation Act, 1963 which further enlarges and extends the period of limitation and hence the order of Adjudicating Authority is grossly erroneous in this aspect that the Section 7 Petition of the Appellant is barred by limitation especially when the Corporate Debtor voluntarily disclosed and acknowledged the liability towards the appellant. In various cases, the Hon’ble Apex Court has already settled the law that Balance Sheet dues so reflected appropriately in the Balance Sheet and that too a duly audited Balance Sheet will act as an acknowledgment of debt under Section 18 of the Limitation Act, 1963 & hence initiation of CIRP is permissible under Section 7 of the “Code”. Keeping in mind the provisions of the Code & law laid down on the subject, it is not in dispute that the dues of the CD are falling within the provisions of Section 18 of the Limitation Act and since debt and default is not in dispute & dues are payable in fact & law & is in accordance with the provisions of the Code, so Section 7 of the Code is attracted - appeal allowed.
|