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2022 (12) TMI 979 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHIInitiation of CIRP - Period of limitation - Financial Creditors - existence of debt and dispute or not - Time Limitation - whether the Adjudicating Authority was justified in dismissing the Application filed under Section 7 of the Code as barred by Limitation and also holding that there was no default? - HELD THAT:- The issue of Limitation is to be tested on the touchstone of the ratio of the Hon’ble Apex Court in DENA BANK (NOW BANK OF BARODA) VERSUS C. SHIVAKUMAR REDDY AND ANR. [2021 (8) TMI 315 - SUPREME COURT], wherein the Hon’ble Apex Court has clearly laid down that Judgement/decree for money or Certificate of Recovery or Arbitral Award in favour of the ‘Financial Creditor’, constitutes an ‘acknowledgement of debt’ and gives rise to a fresh cause of action, provided it is within three years of the default. In the instant case, it is the main case of the Respondent/‘Corporate Debtor’ that the date of NPA is 2009 and hence has to be construed as the ‘date of default’. It is also seen from the Balance Sheets that there has been an acknowledgement of liability upto the years 2018-19. The contention of the Learned Counsel for the Respondent that the Restructuring Letters were sanctioned beyond three years of the date of NPA and therefore is barred by Limitation is untenable as at the cost of repetition we hold that as per the ratio of the Hon’ble Apex Court in ‘LAXMI PAT SURANA VERSUS UNION BANK OF INDIA & ANR. [2021 (3) TMI 1179 - SUPREME COURT] the date of default cannot be strictly construed as the date of NPA. The material on record shows that the Corporate Debtor has been consistently acknowledging its debt from 31.03.2010 onwards by way of letters in Restructuring Packages, and also by way of communication the Appellant/Financial Creditor for Restructuring, apart from the liability being shown in the Balance Sheets. The Section 7 Application is not barred by Limitation, and that there is a debt and default, and the facts of the instant case are squarely covered by the ratio of the Hon’ble Apex Court in Dena Bank (now Bank of Baroda) - appeal allowed.
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