TMI Blog2022 (2) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... ishal Jaiswal Anr. AIR [ 2021 (4) TMI 753 - SUPREME COURT ] and in Dena Bank (Now Bank of Baroda) Vs. C. Shivkumar Reddy Anr. [ 2021 (8) TMI 315 - SUPREME COURT ], in which the Hon ble Supreme Court has discussed in detail, the applicability of Sections 18 and 19 of the Limitation Act, 1963. In the instant case, the loan was sanctioned on 11/09/2006; was declared as NPA on 05.04.2008; attempts were made to restructure the debt; Notice under Section 13(2) of SARFAESI Act, 2002 demanding an outstanding amount of ₹ 7,64,52,372.57/- was issued on 28/10/2010, in response to which, the Learned Counsel for the Respondent offered ₹ 740 Lakhs/- for settlement of the loan amount - The material on record evidences that O.A. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant : Mr. Hitesh Sachar, Advocate. For the Respondent : Mr. Kumar Mihir, AoR, SCI. Ms. Gunjan Sharma and Mr. Anuj Prakash, Advocates. JUDGEMENT [ Per; Shreesha Merla, Member (T) ] 1. Aggrieved by the Order dated 25/02/2021 passed by the Learned Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court-IV, New Delhi) in C.P. (IB) No. 3005(ND)/2019, M/s. Canara Bank, preferred this Appeal. By the Impugned Order, the Adjudicating Authority has dismissed the Application filed under Section 7 of the Insolvency and Bankruptcy Code (hereinafter referred to as the Code ) by M/s. Canara Bank/the Appellant on the ground that it was barred by Limitation . The Adjudicating Authority relied on the Judgement of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng from the date of issuance of the Recovery Certificate, which was issued by the Debt Recovery Tribunal on 07/02/2021 and Application filed on 18/11/2019, is well within the Limitation period of three years; that the account of the Respondent was declared as NPA on 05/04/2008, but the same was restructured on various occasions within the period of three years, which automatically extends the Limitation to the date of acknowledgement , of the OTS. The Learned Counsel in support of his submissions placed reliance on the following Judgements:- Vashdeo R. Bhojwani Vs. Abhyudaya Cooperative Bank Ltd. Anr. Civil Appeal No. 11020 of 2018. M/s. Ugro Capital Ltd. Vs. Bangalore Dehydration and Drying Equipment Co. Pvt. Ltd. (BDDE) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that the Section 7 Application has been dismissed solely on the ground of Limitation, we are of the considered view that the subject matter needs to be adjudicated on the touchstone of the principles laid down by the Hon ble Supreme Court in Asset Reconstruction Company (India) Limited Vs. Bishal Jaiswal Anr. AIR 2021 SC 5249 and in Dena Bank (Now Bank of Baroda) Vs. C. Shivkumar Reddy Anr. (2021) 10 SCC 330, in which the Hon ble Supreme Court has discussed in detail, the applicability of Sections 18 and 19 of the Limitation Act, 1963. It is apposite to reproduce the relevant paragraph of Dena Bank (Now Bank of Baroda) (Supra) detailed as hereunder: 138. While it is true that default in payment of a debt triggers the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 7 IBC would not be barred by limitation, on the ground that it had been filed beyond a period of three years from the date of declaration of the loan account of the corporate debtor as NPA, if there were an acknowledgment of the debt by the corporate debtor before expiry of the period of limitation of three years, in which case the period of limitation would get extended by a further period of three years. 141. Moreover, a judgment and/or decree for money in favour of the financial creditor, passed by the DRT, or any other tribunal or court, or the issuance of a certificate of recovery in favour of the financial creditor, would give rise to a fresh cause of action for the financial creditor, to initiate proceedings under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Section 7 Application was preferred by the Appellant on 18/11/2019. The Appellant Bank was thus entitled to initiate proceedings under Section 7 within three years from the date of issuance of the Recovery Certificate and we are of the considered view that the ratio of Hon ble Apex Court in Dena Bank (Now Bank of Baroda) (Supra) is squarely applicable to the facts of this case, as Recovery Certificate was issued on 02.07.2019 and the Application was filed on 18/11/2019 well within three years from the date of cause of action. 7. For all the aforenoted reasons this Appeal is allowed and the Impugned Order is set aside. Having regard to the fact that we hold that the Application is well within the Limitation, we direct the Adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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