Initiation of CIRP - it is established rule that when a party ...

Written Acknowledgment of Debt Restarts Limitation Period, Validating Corporate Insolvency Resolution Process Under IBC Sections 5(21) and 3(12).

August 16, 2021

Case Laws     Insolvency and Bankruptcy     Tri

Initiation of CIRP - it is established rule that when a party issues acknowledgment of its liability in writing the period of limitation starts afresh. Therefore, the Bench has no doubt that the respondent unequivocal admission of liability negates the contention of the petitioner that the claim is time barred - the Bench is of clear view that there is a debt in terms of Section 5(21) of Code and there is a default in terms of Section 3(12) of Code are clearly established and the debt is also within limitation. - Tri

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