The considerations pertaining to the bar of limitation as per Section 18 of the Limitations Act, 1963, were considered by the NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI, before a bench consisting of Justice Ashok Bhushan, Chairperson and Dr. Alok Srivastava, Member (Technical), in the matter of M/s Shree Bansi Metal and Alloys Pvt. Ltd. Vs. M/s S.S. Alloys Products Pvt. Ltd. [Company Appeal (AT) (Ins) No. 06 of 2022], on 20.01.22.
The present appeal has been filed against the judgement and order dated 20.04.2021 passed by the ‘Adjudicating Authority’ by which order the Section 9 application filed by the Applicant under the Insolvency and Bankruptcy Code, 2016, has been rejected. The Appellant claiming to be the ‘Operational Creditor’ filed an application claiming an amount of Rs. 24,71,337 plus interest. The ‘Adjudicating Authority’, the National Company Law Tribunal, rejected the application as ‘barred by time’.
The Learned Counsel for the Appellant, submitted that although the last date of transaction was 17.04.2013 but there was an acknowledgement by confirmation of Account on 07.09.2019 as well as on 01.04.2018. It was contended that balance confirmation on 01.04.2018 filed at page-58 of the paper book has not been considered by the ‘Adjudicating Authority’. It was further asserted that it is well settled that from the date of acknowledgment there shall be a fresh period of limitation. The same had been contended on the basis of the provisions of Section 18 of the Limitation Act, 1963.
The National Company Law Appellate Tribunal, Principal Bench, New, upon a perusal of facts and consideration of arguments from both sides, held that in the impugned order, the finding was recorded that last date of transaction is 17.04.2013 and the acknowledgement of balance confirmation which has been claimed by the Appellant is 01.04.2018 and 07.09.2019. It was noted that even if the said balance confirmation are treated as acknowledgement, the said acknowledgement been done after the expiry of limitation from 17.04.2013 shall not give any fresh period of limitation to the Appellant. Thus, the Tribunal did not find any error in the order of the ‘Adjudicating Authority’ in rejecting the application as ‘barred by time’. There was held to be no merit in the appeal, and the appeal was accordingly dismissed.
Order reviewed by Bhargavi