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2022 (11) TMI 1044 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHICIRP - Date of default - whether the application was barred by time limitation - Application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted - non-performing assets - HELD THAT:- The material on record shows that the ‘Corporate Debtor’ had paid an amount of Rs.50,000/- on 13.10.2017, reaffirmed by the ‘Corporate Debtor’ vide Reply dated 04.12.2017, whereunder an objection was raised to the possession Notice issued by the ‘Financial Creditor’ under the SARFAESI Act. From the ratio of the Judgement in DENA BANK (NOW BANK OF BARODA) VERSUS C. SHIVAKUMAR REDDY AND ANR. [2021 (8) TMI 315 - SUPREME COURT], it is clear that even an offer of One-Time Settlement made within the period of Limitation can be construed as an ‘Acknowledgement of Debt’. Any acknowledgement in the Balance Sheets, or any part payments made thereunder can be construed as an ‘Acknowledgement’ under ‘Section 18 of the Limitation Act, 1962’. The Hon’ble Apex Court in a catena of Judgements has laid down that it is not the date of NPA which strictly triggers the cause of action but the date of default - In the instant case, it is to be construed that the date of default is 31.03.2016 as till then, several attempts were made to restructure the loan and fresh sanctions were also made in favour of the ‘Corporate Debtor’. At the cost of repetition, the last payment was made on 13.10.2017 and this part payment is covered under Section 18 of the Limitation Act, 1962. Thus, the Application was well within the period of Limitation. It is also relevant to note that the copy of the Financial Statements dated 2013, 2014 showing the record of default were also appended to the Application. The documents on record clearly evidence that there was a ‘date of default’ and we find no illegality or infirmity in the Order of the Adjudicating Authority in admitting the Section 7 Application - however the Company is already under Liquidation as of today. Appeal dismissed.
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