Limitation in insolvency proceedings requires consideration of part payments, ledger entries and account confirmations before rejecting a Section 9 claim.

Material documents showing part payments, a running ledger account and a confirmation of accounts must be considered when deciding whether a Section 9 insolvency application is time-barred. The record indicated that the notice and petition referred not only to the stated default date, but also to later payments and a confirmation within the relevant period. Because these documents were relevant to limitation and were not examined, the rejection of the insolvency application could not be sustained and the matter required fresh consideration.

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Issues: Whether the order rejecting the Section 9 insolvency application as time-barred could stand when the record showed part payments, a running ledger account, and a confirmation of accounts, and whether the matter required fresh consideration by the appellate tribunal.

Analysis: The notice under Section 8 and the petition under Section 9 referred not only to the stated default date but also to continued part payments, the last payment date, and a confirmation of account within the relevant period. The running ledger account and confirmation letter were part of the record, yet they were not considered while deciding limitation. Since these documents were material to the question whether the claim was barred by limitation, their non-consideration affected the correctness of the decision.

Conclusion: The impugned order could not be sustained and the matter had to be considered afresh.

Ratio Decidendi: When material documents showing part payments, ledger entries, or confirmation of account bear on limitation, they must be considered before rejecting an insolvency application as time-barred.

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