Limitation under insolvency law: disputed emails were not acknowledgment of debt, so the Section 9 application was time-barred.

An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was treated as governed by Article 137 of the Limitation Act, 1963, requiring filing within three years from the date the right to apply accrues. On the facts noted, the application filed on 13.03.2020 was beyond three years from the pleaded default date of 30.12.2016. The emails relied on by the applicant were found not to constitute a clear acknowledgment of debt under Section 18 of the Limitation Act, as they reflected a dispute over dues rather than an admission of the full claimed liability. The application was therefore time-barred and not maintainable on limitation.

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Issues: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation, and whether the emails relied upon by the applicant amounted to acknowledgment of debt so as to extend limitation.

Analysis: The application was filed on 13.03.2020, while the date of default pleaded in the application was 30.12.2016. The applicable limitation for an application under Sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016 is governed by Article 137 of the Limitation Act, 1963, and the application must be filed within three years from the date when the right to apply accrues. The correspondence placed on record, including the emails relied upon by the applicant, did not amount to a clear acknowledgment of the claimed debt within the meaning of Section 18 of the Limitation Act, 1963. The e-mails showed dispute regarding the claimed dues and did not establish admission of the full debt asserted in the application.

Conclusion: The application was time-barred and the plea of acknowledgment failed. The application under Section 9 was not maintainable on limitation.

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