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TMI Blog2020 (1) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... t case the applicant has filed the application under Section 7 of the I B Code on 29th May, 2018 after eight years from the date of accrual of cause of action i.e. 30.11.2010. Thus, the application filed under Section 7 of I B Code is apparently time barred. In the case on hand the cause of action arose on 31.01.2013 when the last payment was made by the corporate debtor, though date of default was 30.11.2010, but, thereafter, no acknowledgement was made by the corporate debtor and/or obtained by the applicant before expiration of three years as required in Section 18 of the Limitation Act, therefore, the application is barred by limitation as it fall under article 137 of the Limitation Act which is a residuary article. Application not main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge Branch, Dist. Ahmedabad, granted various financial credit facilities to the corporate debtor as per the details given at page No. 41-76 to the application and the respondent company is in default as per the details given in the computation sheet annexed to the application at page No. 77-78. 5. It is stated by the financial creditor that against the total loan of ₹ 3927.00 lacs sanctioned to the corporate debtor, as per the details given at page No. 41-76 to the application, the corporate debtor is in default of ₹ 1,26,50,17,766.67 (Rupees one hundred twenty-six crores fifty lacs seventeen thousand seven hundred sixty-six and paise 67 only). That, the present Insolvency Resolution Application is filed under Section 7 of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.11.2017 proposed for one-time settlement acknowledging the debt and, therefore, the application so filed by the applicant is liable to be admitted. 9. On perusal of the record it is observed that the account of the corporate debtor was declared NPA on 30.11.2010, whereas, the application under Section 7 of I & B Code has been filed on 29th May, 2018 i.e. after eight years from the date of accrual of cause of action. Hon'ble Supreme Court in the case of B.K. Educational Services Pvt. Ltd. vs. Parag Gupta and Associates 2018 SCC Online SC 1921 held that the Limitation Act is applicable to applications filed under section 7 and 9 of the Code from the inception of the Code, Article 137 of the Limitation Act gets attracted. "The righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion raised by the learned lawyer for the applicant that the corporate debtor has acknowledged the debt on 27.11.2017, it is desirable to refer Section 18 of the Limitation Act, 1963 which stipulates that "where, before the expiration of the prescribed period for a suit or application in respect of any property or right, an acknowledgement of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by any person through whom he denies his title or liability, a fresh period of limitation shall be computed from the time when the acknowledgement was signed." 14. In the case on hand the cause of action arose on 31.01.2013 when the last payment was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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