https://www.taxtmi.com/caselaws?id=774349 A one-time settlement with the guarantors did not extinguish the principal borrower's liability where the settlement preserved the creditor's right to recover the balance from the corporate debtor and the borrower was not a party to that settlement; the financial debt therefore remained due and payable. The Section 7 application was within limitation because it was filed within three years of the default date taken from NPA classification, and the debtor's audited balance sheet amounted to an acknowledgment of liability under Section 18 of the Limitation Act, extending time. The Adjudicating Authority's discretion under Section 7(5)(a) was properly exercised because no legal impediment or overriding circumstance prevented admission once debt and default were established. en-us Thu, 03 Jul 2025 00:00:00 +0530 Tue, 08 Jul 2025 08:36:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774349 A one-time settlement with the guarantors did not extinguish the principal borrower's liability where the settlement preserved the creditor's right to recover the balance from the corporate debtor and the borrower was not a party to that settlement; the financial debt therefore remained due and payable. The Section 7 application was within limitation because it was filed within three years of the default date taken from NPA classification, and the debtor's audited balance sheet amounted to an acknowledgment of liability under Section 18 of the Limitation Act, extending time. The Adjudicating Authority's discretion under Section 7(5)(a) was properly exercised because no legal impediment or overriding circumstance prevented admission once debt and default were established. Case-Laws IBC Thu, 03 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774349