Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (10) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 491 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - pre-existing dispute or not - time limitation - HELD THAT:- It is stated that as per Section 18(1) of Limitation Act, 1963, an acknowledged of liability should be expiration of prescribed period for filing a suit or application. As per Art. 137 of the Limitation Act, where there is no prescribed period of limitation then the period of limitation to file proceedings in 3 years from the date when the right to apply accrues. It is submitted that the AMC has deducted/levied amount of Liquidated Damages from the Corporate Debtor on the basis of Clause 5 of the contract which provides for penalty for breach of contract and same is levied by Corporate Debtor to Operational Creditor on back to back basis as it is mentioned in email dated 11.07.2018 sent by Corporate Debtor to Operational Creditor. It is submitted that the same is acknowledged by the Operational Creditor through its mail dated 13.07.2018 which also shows that there is pre-existing dispute between the parties - it is evident that there are pre-existing disputes between the parties. Accordingly, as per the provisions contained in Section 9(5)(ii)(d), the petition is liable to be rejected. Application rejected.
|