Limitation for insolvency claims under Section 7 depends on valid written acknowledgment before expiry; late filing remained barred.

Section 7 insolvency applications are subject to the Limitation Act, 1963, with Article 137 governing the period of limitation. An acknowledgment of liability extends time only if it is in writing and made before expiry of the prescribed period under Section 18 of the Limitation Act, 1963. On the stated facts, the application was filed long after default, and the alleged one-time settlement letter did not save limitation because it did not create a valid acknowledgment within time. The petition was therefore dismissed as barred by limitation and not maintainable.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation and whether the alleged acknowledgment of liability extended the limitation period.

Analysis: The application was filed long after the date of default and after the account was declared non-performing asset. The governing law is that applications under Section 7 of the Insolvency and Bankruptcy Code, 2016 are subject to the Limitation Act, 1963, and Article 137 applies to such applications. Acknowledgment of liability can extend limitation only if it is made in writing before the expiry of the prescribed period under Section 18 of the Limitation Act, 1963. On the facts, the alleged one-time settlement letter did not cure the bar of limitation because it did not save the claim within the prescribed period.

Conclusion: The application was held to be barred by limitation and not maintainable, and the petition was dismissed.

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