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        IBC

        The NCLAT dismissed the appeal, holding that the insolvency...

        Insolvency application against personal guarantor filed within limitation period under Section 13(2) upheld due to debt acknowledgment (2)

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                The NCLAT dismissed the appeal, holding that the insolvency resolution application against the personal guarantor was filed within the prescribed limitation period. The tribunal emphasized that the OTS proposal, though not submitted before the Adjudicating Authority, was a material acknowledgment of debt extending the limitation period. The letter dated 19.03.2018 by the appellant as director acknowledged the debt and the failure of the restructuring agreement, thereby reviving limitation. The limitation period commenced from the expiry of the 60-day notice under Section 13(2) and was extended by the acknowledgment letter, making the application served on 10.05.2022 timely. The appeal lacked merit and was accordingly dismissed.
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