TMI Blog2022 (6) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012 to 2019 have been placed on record by the Financial Creditor in the supplementary affidavit dated 6.02.2020. In these Balance sheets, multiple acknowledgments of debt to the Financial Creditor have been made by the Corporate Debtor, specifically, the Corporate Debtor has acknowledged the debt in the balance sheets of Financial Years 2012-13, 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 - due to the specific admissions of debt by the Corporate Debtor, section 18 of the Limitation Act, 1963 will come into effect and result in computation of fresh limitation period of three years from the date of acknowledgment in each balance sheet. Since the last of such acknowledgments was made on 31st March 2019, the limitation period would last up till 31st March 2022. As such, the present petition is well within limitation. Whether admissions are not valid as the debt so acknowledged by the Corporate Debtor in the said balance sheets? - HELD THAT:- This Adjudicating Authority is satisfied that the debt albeit disputed was due from the Corporate Debtor to the Financial Creditor and the Corporate Debtor has made a default in the payment of the same and has also acknowledged the said fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncial Creditor has also filed application before the debt recovery Tribunal I of the Gujarat state of Ahmedabad as properties of the Corporate Debtor is situated within the jurisdiction of Gujarat state. 3.5. Total amount claimed to be in default is Rs. 54,33,52,844.37/-. The date of NPA is shown to be 30th of September, 2012 which is also taken to be the date of default. 4. Part I of the petition contains the details of the applicant. 5. Part II of the petition contains the details of the Corporate Debtor. 6. Part III of the petition contains the particulars of the proposed Interim Resolution Professional. 7. Part-IV contains particulars of Financial Debt. In item 2 of this part the amount claimed to be in default and the date on which the default occurred are mentioned. 8. Part-V contains the particulars of financial debt, documents, records and evidence of default. 9. The CIBIL report is annexed at page- 403 to 424 of this application. 10. Submissions/Contentions on behalf of Corporate Debtor 10.1. There is no record of default with any information utility annexed with this application under Section 7 of IBC therefore, this application is defective. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative expenses and escalation of project cost and interest etc. The enhanced limit was not sufficient to implement the project nor it was as per the request of the Corporate Debtor. 10.7. The Corporate Debtor in paragraph 10, 11, 12, 13, 14, 15, 16 has tried to point out breach of various obligations on the part of the bank in providing the credit facilities to the Corporate Debtor. The respondent thus states that the Corporate Debtor is not responsible for the alleged claims of the bank. 10.8. It is further submitted that the amount shown in the application is not correct and the applicant bank is not entitled to any relief in its favour. Being aggrieved of the action of the bank, the Corporate Debtor accordingly had filed S.A No. 46/ 2013 before DRT-I Ahmedabad thereby challenging the actions of the bank. 10.9. It is submitted that the alleged default occurred on 30.09.2012 and the classification was also done on 30.09.2012, whereas the present petition was filed somewhere in the month of April, 2019, this clearly establishes that the same is not within the limitation period. 11. Analysis and Findings: 11.1 Heard the Ld. Counsel for the Financial Creditor and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitiate action against such entity being a corporate debtor (corporate guarantor would get triggered the moment the principal borrower commits default due to non-payment of debt. Thus, when the principal borrower and/or the (corporate) guarantor admit and acknowledge their liability after declaration of PA but before the expiration of three years there from including the fresh period of limitation due to (successive) acknowledgments, it is not possible to extricate them from the renewed limitation accruing due to the effect of Section 18 of the Limitation Act. Section 18 of the Limitation Act gets attracted the moment acknowledgment in writing signed by the party against whom such right to initiate resolution process under Section 7 of the Code enures. Section 18 of the Limitation Act would come into play every time when the principal borrower and/or the corporate guarantor (corporate debtor), as the case may be, acknowledge their liability to pay the debt. Such acknowledgment, however, must be before the expiration of the prescribed period of limitation including the fresh period of limitation due to acknowledgment of the debt, from time to time, for institution of the proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... implication from the nature of the admission, and need not be expressed in words. If the statement is fairly clear then the intention to admit jural relationship may be implied from it. The admission in question need not be express but must be made in circumstances and in words from which the court can reasonably infer that the person making the admission intended to refer to a subsisting liability as at the date of the statement. In view of the law laid down in the aforementioned judgments, this Adjudicating Authority is satisfied that the debt albeit disputed was due from the Corporate Debtor to the Financial Creditor and the Corporate Debtor has made a default in the payment of the same and has also acknowledged the said fact and therefore the plea of Corporate Debtor is untenable and needs to be rejected. 12. It is, accordingly, hereby ordered as follows: - a. The application bearing CP (IB) No. 600/KB/2019 filed by UCO Bank (Financial Creditor), under section 7 of the Code read with rule 4(1) of the Insolvency Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP against GIT Textiles Manufacturing Limited , CIN: U18101WB2005PLC1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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