Axis Bank Limited Vs. Naren Sheth and Ors. - (Supreme Court) (12 Sep 2023)
Fresh period of limitation shall be computed from the time when the acknowledgment is signed
MANU/SC/1017/2023
Limitation
Present appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016, has been filed assailing the correctness of judgment and order of National Company Law Appellate Tribunal, whereby the Company Appeal filed by the Appellant was dismissed upholding the judgment and order passed by the Adjudicating Authority, admitting the application under Section 7 of the IBC after condoning the delay.
Section 3(1) of the Limitation Act creates bar for the institution of any suit, appeal, or application made after the prescribed period of limitation to be dismissed, even though limitation has not been set up as a defence.
Section 5 of the Limitation Act provides for an extension for the prescribed period in certain cases where sufficient cause for not preferring the appeal or where the application could not be made within the prescribed time. Section 18 of the Limitation Act provides that, where acknowledgment in writing of the liability is made by a party against whom any right is claimed, a fresh period of limitation shall be computed from the time when the acknowledgment is so signed.
The Adjudicating Authority as well as NCLAT have accepted the explanation of Respondent No. 2 for the delay caused in filing the Section 7 IBC petition to be satisfactory and have condoned the same. Secondly, in view of the first and second OTS proposals by the Corporate Debtor being not questioned by the suspended Directors, there is no reason to disbelieve or to cast any doubt on the said documents at the instance of the Appellant. There is no merit in the appeal. Appeal dismissed.
Tags : APPLICATION ADMISSION DELAY
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