Acknowledgment by a Corporate Debtor in response to a Demand Notice under Section 8 of the IBC can be treated as an acknowledgment under Section 19 of the Limitation Act | Section 19 of the Limitation Act requires payment to be made within the limitation period, but does not mandate that acknowledgment also occurs within that period – Super Floorings Pvt. Ltd. Vs. Napin Impex Ltd. – NCLAT New Delhi

The Hon’ble NCLAT held that: (i) In the present case, last payment was admittedly made on 26.08.2019 i.e. within the period of three years and there is also acknowledgment by the Corporate Debtor in writing which is reflected from the reply to demand notice. (ii) While requirement under Section 19 of the Limitation Act is that payment should be made within the period of limitation. However, it does not require that acknowledgment should also be made within that period. (iii) The operational creditor was clearly entitled for the benefit of extension of limitation under Section 19 of the Limitation Act and both the conditions which are required to be fulfilled under Section 19 were fulfilled.

Related Posts:

If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

IBC-Case Laws-NCLAT
Scroll to Top