Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2020 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (8) TMI 609 - AT - Insolvency and BankruptcyMaintainability of application - CIRP process - NPA - relevant date of default - Principles of Natural Justice - Appellant submitted that the Adjudicating Authority did not observe the principal of Natural Justice and had passed the order for commencement of CIRP in nearly three days without even providing an opportunity to file written submissions or objections on application under Section 7 of I&B Code - HELD THAT:- The Bank has declared it as NPA on 30.06.2015. We are agreed with the finding of Adjudicating Authority that the NPA date is 30.06.2015. The Application under Section 7 of I&B Code is filed on 15.03.2019 i.e. after three years from the date of default. Therefore, the question for consideration is whether the Corporate Debtor has acknowledged the debt as per the requirement of under Section 18 of limitation Act, only then, the date of default can be forwarded to a future date. It is now well settled that a writing to be an acknowledgement of liability must involve an admission of subsisting Jural relationship between the parties and a conscious affirmation of an intention of continuing such relationship in regard to an existing liability. The Admission need not be in regard to any precise amount nor by expressed words. If a defendant writes to the plaintiff requesting him to send his claim for verification of payment it amounts to an acknowledgement. Corporate Debtor has acknowledged the debt within three years i.e, before the expiration of the prescribed period for a suit or application. Thus, the Learned Adjudicating Authority has rightly held that the Application under Section 7 of I & B Code is well within limitation - Therefore, no interference is called for in this Appeal. Appeal dismissed.
|