Limitation under Section 18: Partial claim admission by Resolution Professional does not extend time without debtor acknowledgment.

A Resolution Professional's partial admission of a creditor's claim did not constitute acknowledgment of liability by the corporate debtor under Section 18 of the Limitation Act, 1963, because no balance sheet or other material showed a clear acknowledgment by the debtor itself. The claim arose from an agreement to sell with a fixed completion date, and the balance portion was therefore held to remain time-barred. The appellate tribunal upheld the finding that part-acceptance of the claim during claims verification could not extend limitation or revive the remaining claim.

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Issues: Whether the Resolution Professional's partial acceptance of the claim could be treated as an acknowledgment extending limitation under Section 18 of the Limitation Act, 1963, so as to save the balance claim from being time-barred.

Analysis: The claim arose from an agreement to sell with a fixed date for completion, and the Adjudicating Authority had held the claim to be barred by limitation. The appellant relied on decisions recognising that a clear acknowledgment of liability, including in balance sheets, can attract Section 18 and give rise to a fresh period of limitation. However, no acknowledgment by the corporate debtor in a balance sheet or other material was shown. The only reliance was on the Resolution Professional's affidavit stating that a part of the claim had been admitted after examining the documents and ledger accounts. Such part-admission by the Resolution Professional, made in the course of dealing with the claim, was held not to amount to an acknowledgment by the corporate debtor within the meaning of Section 18.

Conclusion: The part acceptance of the claim by the Resolution Professional did not extend limitation, and the finding that the balance claim was time-barred was upheld.

Final Conclusion: The appeal failed on merits and the order rejecting interference with the disallowance of the remaining claim was affirmed.

Ratio Decidendi: A Resolution Professional's partial admission of a claim, without a clear acknowledgment of liability by the corporate debtor, does not constitute acknowledgment under Section 18 of the Limitation Act, 1963.

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