Any extension of limitation by payment under Section 19 of the Limitation Act would ensure to the benefit of the Financial Creditor if the same is made within the prescribed period of limitation – Edelweiss Asset Reconstruction Company Limited Vs. Chemstar Organics (India) Ltd. – NCLT Mumbai Bench
The Adjudicating Authority observed that even if the documents produced by the Applicant are taken to be acknowledgment of liability, such documents cannot come to the aid of the applicant as the same are dated/issued beyond the expiration of prescribed period of limitation. In any case, documents/correspondence relied upon by the petitioner do not constitute any acknowledgment of debt under Section 18 of the limitation Act as the same do not meet the three essential ingredients of Section 18 of Limitation Act. Therefore, we believe that there is no acknowledgement of the debt by the respondent.