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2022 (2) TMI 1129 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - time limitation - HELD THAT:- Period of Limitation following from date of NPA (30.06.2014) is 30.06.2019. The Petition has been filed on 07.05.2019 before the Adjudicating Authority. What has generally been considered , the date of default under Section 7 of the Code, particular, in case of Banks date of NPA is considered as Date of Default. As it is amply clear as per the RBI Circular, the Banks are required to declare the Date of NPA clearly and categorically without any ambiguity. In the present case of the Appellant, they were assigned the ‘Debt’ from the Bank and the Bank has clearly defined the Date of NPA as 30.06.2014 and the date of assignment by ING Vyasya Bank Limited / Bank has been done on 19.09.2014. So clearly it is after the Date of NPA for amplifying. It is further mentioned that merger of ING Vyasya Bank Limited was made with Kotak Mahindra Bank from 01.04.2015 by the order of RBI - Section 7 of the Code is concerned with only two factors. There must be a ‘debt’ and it must be ‘due’ and ‘payable’ in the law and there is a ‘default’. The Respondent is not refuting the ‘Debt’ nor they are refusing that it was not due and payable in law except the Limitation issue and computation of default. It is amply clear that if Settlement offer or other way of acknowledgement of Debt has been done within the first period of limitation then Limitation gets extended again for the next three years - it is very much clear that the provisions of Limitation Act, 1963 which includes extension of limitation due to acknowledgment in writing, apply to the present case, the petition filed before the Adjudicating Authority is within the limitation period and both ‘Debt’ and ‘Defaults’ are not disputed and hence, provisions of Section 7 of the Code is applicable to the case and requires positive consideration towards its admission under the provision of the Code R/w the Limitation Act, 1963. The petition has been filed within the limitation period and hence Section 7 of the Code petition can be initiation against the Corporate Debtor - Appeal allowed.
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