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2022 (12) TMI 315 - AT - Insolvency and BankruptcyMaintainability of application preferred by the Financial Creditors under Section 7 of the Code - initiation of CIRP - application dismissed on the ground that it is barred by Limitation - HELD THAT:- Keeping in view that there is no denial by the Counsel for the Respondent that the amount was reflected in the Balance Sheets coupled with the fact that the Appellant had filed the Balance Sheet for the Financial Year 2019 which reflects these amounts under unsecured loans, this Tribunal is of the considered view that the acknowledgement in the Balance Sheet squarely falls under ‘acknowledgment of debt’ as provided for under Section 18 of the Limitation Act, 1963. The Hon’ble Supreme Court in LAXMI PAT SURANA VERSUS UNION BANK OF INDIA & ANR. [2021 (3) TMI 1179 - SUPREME COURT] and in DENA BANK (NOW BANK OF BARODA) VERSUS C. SHIVAKUMAR REDDY AND ANR. [2021 (8) TMI 315 - SUPREME COURT] has held that if the debt is reflected in the Balance Sheet/ Financial Statements of the ‘Corporate Debtor’ Company, it is to be construed as ‘acknowledgment’ under Section 18 of the Limitation Act, 1963. In the instant case it is an admitted fact that the Appellants had disbursed the last tranche of the loan on 28.03.2017 and on 29.03.2017 respectively and have filed the Section 7 Application in the month of February, 2021. However, the Balance Sheet of the FY 2019-20 reflects these amounts - the Section 7 Application is not ‘barred by Limitation’ and hence this Appeal is allowed.
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