Limitation by acknowledgment and proof of default supported admission of the insolvency petition and CIRP commencement.

Acknowledgments of liability through restructured loan documents, balance confirmations, and later payment were treated as extending limitation, so the insolvency petition was held within time and the limitation objection was rejected. Financial debt and continuing default were also found on the record, supported by acknowledgments and NPA classification, and the statutory admission requirements were satisfied. The company petition was admitted, CIRP commenced against the corporate debtor, and an interim resolution professional was appointed with moratorium and allied insolvency directions.

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Issues: (i) Whether the company petition seeking initiation of corporate insolvency resolution process was within limitation; (ii) whether the financial creditor had established existence of debt and default so as to justify admission of the petition.

Issue (i): Whether the company petition seeking initiation of corporate insolvency resolution process was within limitation.

Analysis: The account had been restructured, fresh documents were obtained in 2013, debit balance confirmations were executed in 2015, and there was a further payment in 2017. These acts were treated as acknowledgments of liability and showed that the claim was brought within the prescribed period. The plea of limitation was rejected.

Conclusion: The petition was held to be within limitation and the limitation objection was rejected.

Issue (ii): Whether the financial creditor had established existence of debt and default so as to justify admission of the petition.

Analysis: The record showed a financial debt, continuing default, and supporting material including acknowledgments and account classification as non-performing asset. The petition also contained the proposed interim resolution professional's consent and satisfied the statutory requirements for admission.

Conclusion: Existence of debt and default was found established and the petition was admitted, with commencement of CIRP and appointment of the interim resolution professional.

Final Conclusion: The insolvency petition was admitted, CIRP was initiated against the corporate debtor, and moratorium and allied insolvency directions were ordered.

Ratio Decidendi: A company petition under section 7 of the Insolvency and Bankruptcy Code, 2016 is maintainable when the financial debt and default are established and acknowledgments of liability keep the claim within limitation.

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