Section 19 of the Limitation Act, 1963 is not subject to any qualification/exception that after Account is declared NPA, if the debtor makes payments on account of debt, the Section would not be applicable – Sh. Rajendra Narottamdas Sheth, Suspended Board of Director Vs. Sh. Chandra Prakash Jain, IRP for R.K. Infratel Ltd – NCLAT New Delhi

The Learned Counsel for the Appellant referring to Judgment in the matter of Jagdish Prasad Sharda referred [2020] ibclaw.in 85 NCLAT of another bench of this Tribunal submitted that in that matter it was interpreted that even if the payments were made after the Account was declared NPA if the Account was not regularized benefit can not be taken. It may be clarified that limitation issue is decided on facts and law both and it differs from case to case. In the instant case, when Bank declared NPA to recover dues, it moved DRT. If the Corporate Debtor made some payments, as a reasonable prudent person, Bank received the payments. Section 19 of the Limitation Act, 1963 is not subject to any qualification/exception that after Account is declared NPA, if the debtor makes payments on account of debt, the Section would not be applicable. The Adjudicating Authority found that there were not merely repayments but also Acknowledgments.

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