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of <h1>Payment of TDS on Interest Extends Limitation Period for IBC Petition Admittance</h1> <h3>Amluckie Investment Co. Ltd. Versus Skil Infrastructure Ltd.</h3> Amluckie Investment Co. Ltd. Versus Skil Infrastructure Ltd. - TMI Issues Involved:1. Whether the amount paid towards interest as on 31.03.2019 extends the period of limitation.2. Whether section 18(1) & 19 of Limitation Act, 1963 is applicable to the provisions of IBC.Issue-Wise Detailed Analysis:1. Whether the amount paid towards interest as on 31.03.2019 extends the period of limitation:The Tribunal considered whether the payment of TDS on interest by the Corporate Debtor extended the period of limitation. The Petitioner demonstrated that the Corporate Debtor intermittently paid TDS on interest, with the last payment made on 31.03.2019. The Tribunal noted that the period of limitation would typically end on 01.01.2018 if the default date was 01.01.2015. However, since the interest payments continued within the three-year limitation period, the Tribunal concluded that the limitation period was extended under Sections 18 and 19 of the Limitation Act, 1963. Section 19 states that where payment is made on account of debt or interest before the expiration of the prescribed period, a fresh period of limitation can be computed from the time when the payments are made.2. Whether section 18(1) & 19 of Limitation Act, 1963 is applicable to the provisions of IBC:The Tribunal examined whether Sections 18 and 19 of the Limitation Act applied to the Insolvency and Bankruptcy Code (IBC). It cited several judgments, including 'BK Educational Services vs. Parag Gupta & Associates' and 'Babulal Gurjar vs. Veer Gurjar Aluminium Industries Pvt. Ltd.,' which held that the Limitation Act is applicable to applications filed under Sections 7 and 9 of the IBC. The Tribunal also referred to the NCLAT's decision in 'Yogeshkumar Thakker v. IOB,' which confirmed that Section 18 of the Limitation Act applies to the IBC proceedings. Furthermore, the Tribunal highlighted that the payment of TDS on interest amounts to part repayment of the loan under Section 198 of the Income Tax Act, thereby extending the limitation period.Findings and Conclusion:The Tribunal found that the Corporate Debtor failed to pay the amounts due as on 31.12.2014 and again on 31.03.2019, when the last tranche of TDS on interest was paid. This payment extended the limitation period, making the petition filed on 31.03.2019 within the permissible period. The Tribunal concluded that the essential ingredients of Section 7 of the IBC were satisfied, and the petition deserved admission.Order:The Tribunal admitted the application under Section 7 of the IBC, prohibiting the institution or continuation of suits against the Corporate Debtor, transferring or disposing of its assets, and recovering any property occupied by the Corporate Debtor. The Tribunal also ordered the continuation of essential goods or services to the Corporate Debtor during the moratorium period. Mr. Shashi Agarwal was appointed as the Interim Resolution Professional to carry out the functions under the IBC. The Registry was directed to communicate the order to the Financial Creditor and the Corporate Debtor immediately.
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