Third-party project coordination emails deemed admissions by Corporate Debtor, extending limitation period for operational debt claim. The Tribunal held that communications and emails from a third party coordinating a project should be considered as admissions by the Corporate Debtor, ...
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Third-party project coordination emails deemed admissions by Corporate Debtor, extending limitation period for operational debt claim.
The Tribunal held that communications and emails from a third party coordinating a project should be considered as admissions by the Corporate Debtor, extending the limitation period for an operational debt claim. The appeal challenging this decision was dismissed as lacking merit, with no costs awarded.
Issues Involved: 1. Whether the certificate of payment and emails issued by SNG Developers Ltd. amount to admission of 'Operational Debt' by the Corporate Debtor. 2. Whether the 'Operational Debt' is time-barred.
Summary:
Issue 1: Admission of 'Operational Debt' The Appellant argued that the certificate of payment dated 28.01.2012 and emails dated 05.07.2012 and 11.09.2015 were issued by SNG Developers Ltd., a third party, and not by the Corporate Debtor, SNG Techno Build Pvt. Ltd. The Respondent countered that SNG Developers Ltd. was coordinating the project work and any admission by them should be considered as valid admission by the Corporate Debtor. The Tribunal noted that the work order dated 25.07.2011 was issued by SNG Vardhman Techno Build Pvt. Ltd. (later SNG Techno Build Pvt. Ltd.) and that various communications and emails indicated that SNG Developers Ltd. was coordinating the project. Thus, it concluded that the emails and communications from SNG Developers Ltd. related to the same project and should be considered as admissions by the Corporate Debtor.
Issue 2: Limitation of 'Operational Debt' The Appellant contended that the operational debt was time-barred as the work order was issued on 25.07.2011 and the final bill was submitted on 24.03.2018. The Respondent argued that the balance sheet for the years ending 31.03.2015 and 31.03.2016 showed the amount as 'Trade Payable,' thus extending the limitation period. The Tribunal found that the operational debt was acknowledged in the balance sheet and through various communications, extending the limitation period to 23.03.2021. The Section 9 Application was filed within this extended period, making it within the limitation.
Conclusion: The Tribunal concluded that the Impugned Order did not suffer from any error and dismissed the appeal, finding it devoid of merit. No order as to costs.
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