https://www.taxtmi.com/caselaws?id=394041 Limitation for a section 7 insolvency application runs from the date of default under article 137 of the Limitation Act, but a written acknowledgment of liability made before expiry extends time under section 18. On the facts, repeated acknowledgments by the corporate debtor, including admissions in subsequent correspondence, were sufficient to keep the application within limitation. A corporate guarantor may also be proceeded against under the Insolvency and Bankruptcy Code for the guaranteed debt even where the principal borrower is a proprietorship concern, because the guarantee creates an independent liability. The limitation objection failed, maintainability was upheld, and the insolvency initiation remained intact. en-us Thu, 19 Mar 2020 00:00:00 +0530 Sun, 29 Mar 2020 19:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=394041 Limitation for a section 7 insolvency application runs from the date of default under article 137 of the Limitation Act, but a written acknowledgment of liability made before expiry extends time under section 18. On the facts, repeated acknowledgments by the corporate debtor, including admissions in subsequent correspondence, were sufficient to keep the application within limitation. A corporate guarantor may also be proceeded against under the Insolvency and Bankruptcy Code for the guaranteed debt even where the principal borrower is a proprietorship concern, because the guarantee creates an independent liability. The limitation objection failed, maintainability was upheld, and the insolvency initiation remained intact. Case-Laws Insolvency and Bankruptcy Thu, 19 Mar 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=394041