https://www.taxtmi.com/caselaws?id=397798 A Section 7 application under the Insolvency and Bankruptcy Code must rest on a legally recoverable financial debt and remain within limitation under the Limitation Act. The Court noted that limitation generally runs from the date the debt becomes due, and that stale claims are not revived without a fresh acknowledgment or other valid saving ground; on the record, the claim had become time-barred. It also held that the amounts advanced, treated as share application money and adjusted in the parties' dealings, did not satisfy the statutory requirement of a debt disbursed for consideration for the time value of money. The insolvency petition therefore could not be sustained. en-us Fri, 28 Aug 2020 00:00:00 +0530 Fri, 02 Dec 2022 11:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=397798 A Section 7 application under the Insolvency and Bankruptcy Code must rest on a legally recoverable financial debt and remain within limitation under the Limitation Act. The Court noted that limitation generally runs from the date the debt becomes due, and that stale claims are not revived without a fresh acknowledgment or other valid saving ground; on the record, the claim had become time-barred. It also held that the amounts advanced, treated as share application money and adjusted in the parties' dealings, did not satisfy the statutory requirement of a debt disbursed for consideration for the time value of money. The insolvency petition therefore could not be sustained. Case-Laws Insolvency and Bankruptcy Fri, 28 Aug 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=397798