Initiation of CIRP proceedings was challenged on the ground of limitation, which was rejected by the...

Initiation of CIRP proceedings was challenged on the ground of limitation, which was rejected by the Adjudicating Authority and NCLAT based on the acknowledgement of debt in the financial statements and auditor's report of the Corporate Debtor for the year ending 31.03.2017. The entries in the balance sheets, along with Note 3.4 mentioning defaults in repayment of term loans, interest, and long-term borrowings, were considered clear acknowledgments of debt. The Corporate Debtor's One Time Settlement (OTS) proposal to UCO Bank, acknowledging prior debts owed, was also considered an acknowledgment of debt, relying on the Supreme Court's judgment in Lakshmirattan Cotton Mills Co. Ltd. case. The findings of the Adjudicating Authority and NCLAT were upheld as correct in law and fact, and the appeal was dismissed. .....

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