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2022 (4) TMI 1367 - 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 - Application barred by time limitation or not - HELD THAT:- The Application under Section 7 against the Corporate Debtor has been filed on 9th March, 2018 and the limitation for filing the Application under Section 7, under Article 137 of the Limitation Act, 1963 is three years from the date when right to sue accrue. Normally, period of three years’ is to be counted from the date, the account is declared NPA, thus taking three years period from 10th January, 2014, the Application ought to have been filed on or before 9th January, 2017. The Application under Section 7 filed by the State Bank of India is admittedly beyond the period of three years from the date of declaration of NPA and can be held to be barred by time, unless the State Bank of India is able to satisfy that the limitation for filing Section 7 Application stands extended by virtue of provision of Limitation Act, 1963. There can be no dispute to the proposition that limitation for suit is to be calculated as on the date of filing of the suit, meaning thereby that date for filing of the suit is a crucial date to find out as to whether the suit is within the period of limitation or not. Whether the letters on which reliance is being placed by the State Bank of India dated 19th February, 2016 and 29th March, 2016 contain an acknowledgement, which can be treated as acknowledgement within the meaning of Section 18 of the Limitation Act? - HELD THAT:- It is well settled that any request by Borrower for one-time settlement tantamount to acknowledgement under Section 18 of the Limitation Act. In Dena Bank [2019 (3) TMI 1751 - THE NATIONAL COMPANY LAW TRIBUNAL - BENGALURU BENCH] itself Hon’ble Supreme Court has laid down that offer of one-time settlement contains an acknowledgement of debt. The acknowledgement made by the Principal Borrower within three years’ period from the date of account being declared NPA, there shall be fresh period of limitation available to the Financial Creditor and the Application under Section 7 having been filed within three years from the date of acknowledgement, cannot be held to be barred by time - the Application filed by the State Bank of India under Section 7 was within the period of limitation and has rightly been admitted by the Adjudicating Authority. There are no merits in the appeal - appeal dismissed.
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