Authorised filing and acknowledged liability saved the Section 7 insolvency application from maintainability and limitation objections.

A Section 7 application under the Insolvency and Bankruptcy Code, 2016 is maintainable when filed by a bank officer armed with a valid general power of attorney, supported by board resolution and permission letter, because such authority empowers the officer to act for the financial creditor. The application was also not time-barred, as a later credit entry and the corporate debtor's signed balance sheets recording the outstanding liability were treated as acknowledgements of subsisting liability made within the limitation period. Those acknowledgements extended limitation, and the objection that the credit entry was by an unrelated party was unsupported by evidence.

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Issues: (i) Whether the Section 7 application was filed by a duly authorised person. (ii) Whether the Section 7 application was barred by limitation.

Issue (i): Whether the Section 7 application was filed by a duly authorised person.

Analysis: The application was signed by the bank officer who held a valid general power of attorney and was empowered to conduct legal proceedings, file applications and take steps for recovery. The authorisation was supported by the bank's board resolution and permission letter. An officer so empowered is competent to act on behalf of the financial creditor for filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016.

Conclusion: The application was filed by a duly authorised person and the objection to maintainability failed.

Issue (ii): Whether the Section 7 application was barred by limitation.

Analysis: The account was classified as non-performing, but the record showed a later credit entry and balance sheets signed by the corporate debtor recording the outstanding liability to the bank. The Tribunal treated these materials as acknowledgements of subsisting liability made within the limitation period. On that basis, the period of limitation stood extended, and the application could not be treated as time-barred. The Tribunal also noted that the plea that the credit entry was made by an unrelated party was unsupported by evidence.

Conclusion: The application was not barred by limitation.

Final Conclusion: The admission order under Section 7 was sustained because the application was maintainable and filed within the extended limitation period based on acknowledged liability.

Ratio Decidendi: A Section 7 application is maintainable when filed by an officer duly authorised by the financial creditor, and limitation under the Insolvency and Bankruptcy Code, 2016 may be extended by a written acknowledgement of subsisting liability, including entries in balance sheets and other admissions made before expiry of the original period.

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