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2023 (3) TMI 1481 - AT - Insolvency and BankruptcyMaintainability of application under Section 7 of IBC - application barred by limitation which is prescribed under Article 137 of the Limitation Act, 1961 or not - Appellant made various payments up to February, 2017 but also on 07.03.2019 sent a proposal for one time settlement of term loan which tantamounts to acknowledgement - HELD THAT - There is no substance in the argument of Counsel for the Appellant because the Respondent has appended complete detail of various payments made by the Corporate Debtor in the loan account no. 56000983 much after 2015 or till 23.02.2017 when the last payment USD 1 Lakh was made, therefore, there was an acknowledgment on the part of the Corporate Debtor about the debt which was to be paid and since the application under Section 7 was filed on 31.01.2020, therefore, it is well within the limitation. There is hardly any substance in the present appeal for the purpose of interfering in the order of admission on the ground of limitation. There are no merit in the present appeal and the same is hereby dismissed.
Issues involved:
The issue involves the determination of whether the application filed under Section 7 against the Corporate Debtor was barred by limitation. Summary: The Punjab National Bank (International) Ltd. filed an application under Section 7 against the Corporate Debtor for the resolution of a specified amount. The application was admitted, and an Interim Resolution Professional was appointed. An ex-director of the Corporate Debtor challenged the finding of the Adjudicating Authority on the ground that the application was barred by limitation. The Appellant argued that the application was barred by limitation as the last payment was made in June 2015, and the application was filed in January 2020, exceeding the limitation period under Article 137 of the Limitation Act, 1961. The Respondent contended that various payments were made up to February 2017, and a proposal for a one-time settlement was sent in March 2019, constituting an acknowledgment of the debt. After hearing both parties and examining the payment details, the Tribunal concluded that there was an acknowledgment of the debt by the Corporate Debtor through payments made until February 2017. Therefore, the application filed in January 2020 was within the limitation period, and the appeal challenging the order of admission on the ground of limitation was dismissed. This judgment highlights the importance of acknowledging debt payments and their impact on the limitation period for filing applications under relevant sections of the law.
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