TMI Blog2022 (4) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... e particulars of those six cheques allegedly lost by the corporate debtor in March 2017. It is needless to point out that the law relating to the applicability of Section 18 of the Limitation Act, 1963 is fairly well settled. In JIGNESH SHAH ANOTHER VERSUS UNION OF INDIA ANOTHER [ 2019 (9) TMI 1121 - SUPREME COURT] , this Court pointed out that when time begins to run, it can only be extended in the manner provided in the Limitation Act. For holding so this Court made a reference to Section 18 of the Limitation Act. The law as it has developed on the applicability of Section 18 of the Limitation Act and the circumstances in which it would apply, have also not been examined by NCLAT. Therefore, the order of NCLAT is liable to be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as that the claim was barred by limitation. But NCLT found on the basis of a letter dated 28.09.2015 produced by the operational creditor that six cheques had been issued in favour of the operational creditor. These cheques returned dishonoured when presented for payment. The stand taken by the corporatedebtor was that those six cheques were lost by the corporatedebtor in March 2017 and that they had already issued stop payment instructions to the bank on 4.03.2017. The corporate debtor also claimed that the letter dated 28.09.2015 relied upon by the operational creditor was issued by Shree Adeshwar Textiles and that therefore, the operational creditor cannot rely upon the same to save limitation. 5. However, the NCLT, by an order date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fidavit in reply that the corporate debtor had issued stop payment instructions, he conceded that the acknowledgment issued by the banker contained the date 01.01.2018. The following extract from the affidavit in reply/objections of the Director of the corporate debtor makes an interesting reading: ...Hereto annexed and marked collectively as AnnexureC are copies of the intimation issued by the banker of the Corporate Debtor duly recording the instruction of stop payment qua the cheques in question taking record that the cheques had been lost. It is submitted that the banker of the Corporate Debtor has issued such notices acknowledging stop payment instruction on account of loss of the cheques on 04/03/2017, however inadvertently due t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B.K. Educational Services Private Limited vs. Parag Gupta and Associates (2019) 11 SCC 633 did not stand altered by Jignesh Shah, no discordant note was struck. But the cloud of doubt created by Babu Lal (supra) was cleared subsequently in Laxmi Pat Surana vs. Union Bank of India And Another (2021) 8 SCC 481 . In Asset Reconstruction Company (India) Limited vs. Bishal Jaiswal and Another (2021) 6 SCC 366 , this Court, while applying Section 18 of the Limitation Act, even went to the extent of holding that an entry in the balance sheet of the company could also be treated as an acknowledgment in writing, subject however to any caveat found in the accompanying reports. 10. The law as it has developed on the applicability of Section 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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