The NCLAT dismissed the appeal, confirming that the Section 7 ...

Section 7 Petition Not Time-Barred as Balance Sheet Acknowledgment Extends Limitation Period Despite 2015 Default

March 20, 2025

Case Laws IBC AT

The NCLAT dismissed the appeal, confirming that the Section 7 petition was not time-barred due to the Corporate Debtor's acknowledgment of debt in its FY 2019-20 balance sheet, which extended the limitation period. The Tribunal held that while the original default occurred on 31.12.2015, the limitation period was extended by the acknowledgment and further by the Supreme Court's COVID-19 relief order. The Appellant's claims of excessive interest rates (30% p.a. with 36% p.a. penal interest) were rejected as the Corporate Debtor had voluntarily executed and adhered to the loan agreement without previous challenge. The Tribunal noted that if settlement is desired, Respondent may file a Section 12-A application within two weeks; otherwise, CIRP would proceed.

View Source

← Previous Next →

The NCLAT dismissed the appeal, confirming that the Section 7 ...

Section 7 Petition Not Time-Barred as Balance Sheet Acknowledgment Extends Limitation Period Despite 2015 Default

March 20, 2025

Case Laws IBC AT

You may also like:

The NCLAT dismissed a Section 7 application by a Financial Creditor as time-barred. While acknowledging that balance sheet entries can extend limitation periods under...

Initiation of CIRP - NCLT admitted the application u/s 7 - period of limitation - The application filed by the Respondent No. 1 was not barred by time there being...

Initiation of CIRP - Period of limitation - to be recognized from the date of NPA or Balance Sheet recognizing the debt - An application under Section 7 of the IBC would...

Initiation of CIRP - Period of limitation - NPA - it appears that the bank had asserted, the bar of limitation did not apply as the corporate debtor had made...

Initiation of CIRP - Period of limitation -acknowledgement of debts in the Balance Sheet - the acknowledgement in Balance Sheet for FY 2016-17, relied upon by the...

Determining the maintainability of a Section 7 application under the Insolvency and Bankruptcy Code (IBC) based on the date of default and the applicability of...

CIRP - Period of limitation - When the acknowledgment is unequivocal and Auditor’s opinion in any manner does not detract it from being an acknowledgment under Section...

Maintainability of application - initiation of CIRP - Period of limitation after default - the Adjudicating Authority relied on the balance sheet to hold that there was...

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...

Initiation of CIRP - Application barred by time limitation or not - The acknowledgement made by the Principal Borrower within three years’ period from the date of...

Period of limitation for filing of Application for initiation of CIRP - an application under Section 7 of the IBC would not be barred by limitation, on the ground that...

The appellant wrongly relied upon the Amanjyot Singh case and changed stance during final arguments, having earlier contended the 26.05.2016 notice invoked personal...

CIRP - Application filed u/s 7 of IBC dismissed on the ground of time limitation - After perusing the relevant balance sheets and director’s report, it is satisfied that...

The appeal challenged the admittance of a Section 95 application filed by the Financial Creditor, contending it was time-barred. The key issue was whether a letter dated...

HC quashed order relating to Input Tax Credit (ITC) claims that were time-barred under Section 16(4) of CGST Act but fell within limitation under Section 16(5)....

Quick Updates: