West Bengal Biotech Development Ltd.

Issuance of a letter by the Corporate Debtor calling the representative of the Operational Creditor to settle the dispute cannot be considered as an acknowledgement of debt in terms of Section 18 of the Limitation Act – State of West Bengal Vs. Keshav Park Pvt. Ltd. – NCLAT New Delhi

The Operational Creditor has issued the demand notice on 07.10.2017. Through its letter dated 14.12.2017, the Managing Director of the Corporate Debtor requested the Operational Creditor to send its representative to the office of the Corporate Debtor with all the papers and documents for settlement of the claim. Issuance of the letter by the Corporate Debtor calling the representative of the Operational Creditor with all the papers to settle the dispute cannot be considered as an acknowledgement of debt in terms of Section 18 of the Limitation Act. However, to apply the benefit of Section 18 of the Limitation Act, it is necessary that before the expiry of the prescribed period of limitation for suit or Application, such acknowledgement must be in writing.

Issuance of a letter by the Corporate Debtor calling the representative of the Operational Creditor to settle the dispute cannot be considered as an acknowledgement of debt in terms of Section 18 of the Limitation Act – State of West Bengal Vs. Keshav Park Pvt. Ltd. – NCLAT New Delhi Read Post »

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