Limitation in insolvency claims can be saved by a debtor's written settlement promise, allowing a complete section 9 application to proceed.

A debtor's written communication seeking settlement of an unpaid operational claim can operate as a promise to pay and save limitation under section 25(3) of the Indian Contract Act, making a section 9 insolvency application timely. Where the record does not disclose any real pre-existing dispute and the application is otherwise complete, including the supporting affidavit, bank statement and proposed interim resolution professional, the section 9 application is liable to admission and the corporate insolvency resolution process may commence.

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Issues: Whether the application under section 9 of the Insolvency and Bankruptcy Code, 2016 was within limitation and otherwise liable to be admitted.

Analysis: The operational creditor had issued the statutory demand notice after the unpaid operational debt remained outstanding. The corporate debtor's reply dated 14.12.2017, read in context, was treated as a written promise to settle the claim and, therefore, as sufficient to save limitation under section 25(3) of the Indian Contract Act. The record also did not establish any pre-existing dispute of a substantive nature. The application was found complete and compliant with the requirements under section 9, including the supporting affidavit, bank statement, and proposed interim resolution professional.

Conclusion: The application under section 9 was held to be within limitation and was admitted; the corporate insolvency resolution process was directed to commence.

Ratio Decidendi: A written communication by the debtor seeking settlement of the creditor's claim can amount to a promise to pay for limitation purposes, and absent a real pre-existing dispute, a complete section 9 application is liable to be admitted.

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