Initiation of CIRP - Period of limitation - it is well settled ...

CIRP Not Time-Barred: Debt Acknowledged in Balance Sheets, Section 7 Application Valid Despite 2013 NPA Date.

April 7, 2021

Case Laws     Insolvency and Bankruptcy     AT

Initiation of CIRP - Period of limitation - it is well settled position of law that Annual Returns/Audited Balance Sheets can be referred to and relied on to see if contents therein amount to acknowledgement or not. - The Respondent has not shown that while preparing the balance-sheets the directors in their reports recorded denial or any reservation with regard to the debts shown by the Chartered Accountant to claim that they were time-barred. If the debt became NPA on 30th November, 2013 and there are acknowledgments in the balance-sheets of 2014-15 to 2016-17 the Application filed under Section 7 of IBC on 15th December, 2017 cannot be said to be time-barred. - AT

View Source