2023 (1) TMI 553 - AT - Insolvency & Bankruptcy
Initiation of CIRP - Financial creditors - application dismissed primarily on the ground of limitation - existence of the outstanding debt and default - whether deduction of TDS is sufficient to prove that interest amount have been paid? - Reliance on the Note in the Balance Sheet - HELD THAT:- The Respondent has nowhere admitted that this amount of Rs. 10 Lakh was paid towards part payment of the amount due nor the Appellant has set up a case in the pleadings that the said amount has been paid as part payment on 27.09.2017, during the currency of the period of limitation and thus the period of limitation has further extended for the period of three years from the said date. Moreover, it is argued by Counsel for Respondent that Section 19 of the Limitation Act. 1963 talks of the effect of the payment on account of debt when acknowledged is in writing and signed.
The Appellant has miserably failed to prove that the amount of Rs. 10 Lakh, reflected in the ledger account was paid by the Respondent towards the part payment of the amount due (in question) in order to extend the period of limitation of three years from the said date i.e. 27.09.2017 specially in the absence of the evidence of any writing in this regard or otherwise an admission of the Respondent who has categorically denied the same in its reply - second contention of the Appellant in respect of extension of period of limitation is hereby rejected.
Acknowledgement of the debt in the balance sheet of the Respondent - HELD THAT:- There is no acknowledgement or acceptance of the debt within that period when the application would have been within the period of limitation because the same is not unequivocal.
The Appellant cannot take the advantage of the note for the purpose of bringing the application filed under Section 7 within the period of limitation. The contention of the Appellant in this regard as well is hereby rejected - the application filed under Section 7 by the Appellant was barred by limitation and has rightly been dismissed by the Adjudicating Authority on this ground.