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TMI Blog2017 (3) TMI 1867X X X X Extracts X X X X X X X X Extracts X X X X ..... ed with all its rigour and tribunal has no power to extend the period of limitation. A live claim after lapse of limitation period becomes a stale claim unenforceable in law. Accordingly it is to be seen whether the tribunal has been moved within the maximum period of three years prescribed under the indian Limitation Act, 1963 from the date on which the debt has fallen due or the claim has arisen. Admittedly the present claim arises in respect of supplies made by the petitioner to the respondent company during the year 2011-12 through various sales invoices all dated 30th March, 2011. Almost long six years have since passed. There is also no dispute that last part payment against the said supplies was made by respondent company on 29.08 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CHIEF JUSTICE (Retd.) SHRI M.M. KUMAR, HON BLE PRESIDENT SHRI S. K. MOHAPATRA, MEMBER (TECHNICAL) Counsel for the Petitioner: Maiijulika Pal, Advocate ORDER On the ground that default has occurred, this application has been tiled by M/s Prowess International Private limited, Operational Creditor to initiate corporate insolvency resolution process under Section 9 of the Insokency and Bankruptcy Code, 2016 against corporate debtor M/s Action Ispat and Power Private Limited. 2. The precise case of the applicant is that in the course of its business the applicant company had supplied equipments and parts (2* 15 Ton Landle Refining Furnance) through various sales invoices dated 30.03.2011 for an aggregate value of ₹ 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f AIPL/HO/PH-V/SMS/01 dated 13 th October,2010 had agreed to pay an additional 10% of the total value of supplies made through its aforesaid purchase order if those supplies were successfully made within 4 months of issue of its purchase order dated 5 th October, 2010. It is submitted that the supplies were manufactured and kept ready for delivery within 4 months of the stipulated time, but the company failed to take delivery in time and as such total value of the supplies got enhanced. 6. Petitioner submits that despite repeated demands and requests made by the Petitioner for payment of the outstanding dues amounting to ₹ 79,76,715/-, respondent company has failed and neglected to pay the same on one pretext or the other. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim unenforceable in law. Accordingly it is to be seen whether the tribunal has been moved within the maximum period of three years prescribed under the indian Limitation Act, 1963 from the date on which the debt has fallen due or the claim has arisen. 13. Admittedly the present claim arises in respect of supplies made by the petitioner to the respondent company during the year 2011-12 through various sales invoices all dated 30th March, 2011. Almost long six years have since passed. There is also no dispute that last part payment against the said supplies was made by respondent company on 29.08.2012 and there after it has stopped making any payment to the petitioner. The present application has been filed on 15.02.2017 much after the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 18 of the Limitation Act. 16. Law in this regard is clear that acknowledgement executed within subsistence of period of limitation creates fresh period of limitation from the date of acknowledgement. An unqualified acknowledgement of liability by the debtor not only saves the period of limitation but also gives a cause of action to the creditor to base its claim thereon. In the present case however, no doubt the Petitioner has enclosed the financial statements for the FYs 2012-13, 2013-14, and 2014-15 of the respondent company, but it could not be specifically shown as to where the aforesaid dues outstanding to petitioner has been reflected in the company s audited financial statements or which entry establishes that the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not become extinguished hut only unenforceable in a court of law. Though the right is not extinguished, the remedies are clearly barred. These rights are known as imperfect rights. 18. Debt has been defined in the Insolvency and Bankruptcy Code, 2016 as a liability or obligation in respect of a claim which is due and includes a financial debt and operational debt. Default has been defined in the Code as non-payment of debt which has become due and payable. (Emphasis given) A debt which is not recoverable for any valid reason ceases to be an amount due and payable. Default arises for non-payment of an amount which could be recovered in law. Default is the event on the occurrence of which, the insolvency proceedings may be initiated u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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