Period of limitation for a decree issued by DRT, Acknowledgment of debt after filing of CIRP application, Doctrine of election between enforcement of debt under the Recovery of Debts and Bankruptcy Act, 1993 and initiation of CIRP under the IBC – Tottempudi Salalith Vs. State Bank of India & Ors. – Supreme Court
In this important judgment on period of limitation for a decree passed by DRT, the following issues are before Hon’ble Supreme Court:
(i) Date of default in case of the recovery certificate issued by DRT
(ii) Can an acknowledgement of debt made after filing of CIRP application under Section 7 of the IBC extend the period of limitation as Section 18 of the Limitation Act, 1963?
(iii) Can settlement proposed during CIRP application pending for admission be treated as an acknowledgment under Section 18 of the Limitation Act
(iv) Doctrine of election: between the fora for enforcement of debt under the Recovery of Debts and Bankruptcy Act, 1993 and initiation of CIRP under the IBC.
(v) Is the period of limitation twelve years for enforcement of a decree as per Article 136 of the schedule of Limitation Act, 1963.
