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TMI Blog2022 (8) TMI 1563X X X X Extracts X X X X X X X X Extracts X X X X ..... is made, for a period of three years as required under Article 137 of the Act? - HELD THAT:- The letter dated 25.10.2019 is a sufficient evidence of the promise made by the Respondent to the Appellant to make the payments which are due, approved in the JLM held on 19.05.2017 and thus, would fall within the purview of Section 25(3) of the Indian Contract Act, which provides a promise and that too in writing. Undoubtedly, if the period of limitation is to be counted from the date of the default (NPA) and the application under Section 7 having been filed, it would be barred by limitation if it is to be seen in terms of Section 18 of the Act. But keeping in view the fact that after the expiry of period of limitation of three years, prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of default and since in the present case, the default had occurred on 06.03.2010, therefore, the limitation would expire on 06.03.2013, whereas the application was filed on 31.08.2018. It has also been observed that the Appellant cannot take the advantage of the acknowledgment dated 19.12.2016 because the said acknowledgement has taken into effect after the expiry of period of three years and in view thereof, the provisions of Section 18 of the Act would not be attracted. 3. Ld. Sr. Counsel appearing on behalf of the Appellant without touching the impact of the Section 18 of the Act has submitted that the present case is fully covered by the provision of Section 25(3) of the Indian Contract Act, 1872. It is submitted that the Respondent, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nswered we would like to refer to the provisions of Section 25(3) which read as follows:- 25(3). Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law:- (3) it is a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits." 8. In order to bring his case within the four corners of the Section 25(3) of the Indian Contract Act, he has read out Annexure A-5, i.e. letter dated 25.10.2019 written by the Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provision of Section 18 of the Act, on which no argument has been addressed by Sr. Counsel for the Appellant who has changed the face of the case altogether during the course of hearing. 11. In view of the aforesaid discussion, we find the appeal to be meritorious and thus, the same is hereby allowed and the impugned order is hereby set aside. The matter is remanded back to the Adjudicating Authority to consider the application filed under Section 7 of the Code, having been filed within the period of limitation and decide the same in accordance with law. 12. The parties are directed to appear before the Adjudicating Authority on 21st September, 2022. The registry is directed to send a copy of this order to the concerned Adjudicating Au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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