AI Drafter 
TaxTMI 
TaxTMI 
2018 (12) TMI 1817
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....irector of 'Fernas Construction India Pvt. Ltd.' (Corporate Debtor) against order dated 09.07.2018 passed by the Adjudicating Authority (National Company Law Tribunal) New Delhi Bench-III wherein application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code') has been admitted. 2. Learned counsel appearing on behalf of the appellant submitted that the amount due or payable as claimed by the operational creditor being barred by limitation, there is no debt payable in law and therefore the question of default does not arise. 3. According to appellant - 'Fernas Construction India Pvt. Ltd.' (Corporate Debtor) had obtained and undertaken projects worth Rs. 2,400 Crore for companies like ONGC....
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....y that time a sum of Rs. 4,22,20,877/- for which bill was raised was paid. 8. Case of 'RVR Projects Pvt. Ltd.' is that the 'Fernas Construction India Pvt. Ltd.' issued another work order for an amount of Rs. 2,05,02,500/- to the 'RVR Projects Pvt. Ltd.' (Operational Creditor). The said order was also foreclosed midway and by that time total amount of work done was Rs. 1,48,00,184/-. The case of 'RVR Projects Pvt. Ltd.' is that the 'Fernas Construction India Pvt. Ltd.' admitted a debt of Rs. 1,45,28,508/- for both the above work orders on 17.06.2013 and made some past payment amounting to Rs. 42,35,000/- leaving a balance of Rs. 1,02,93,508/- remaining unpaid. 9. The demand notice under Section 8 (1) was issued by 'RVR Projects Pvt. Lt....
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....ro, Small and Medium Enterprises Development Act, 2006 and request its confirmation to Auditor of the Corporate Debtor within 10 days considered the balance as confirmed. 13. 'Fernas Construction India Pvt. Ltd.' (Corporate Debtor) issued a completion certificate on 07.08.2013 wherein actual value of work executed was shown to be Rs. 1,48,00,184.00. The certificate was so issued for the purpose of billing by 'RVR Projects Pvt. Ltd.' for forthcoming opportunities. Another (2nd) job completion certificate was issued on 07.08.2013 wherein actual value of work executed was shown as Rs. 4,21,83,810.00. 14. Operational Creditor by registered post on 31.12.2013 intimated the Corporate Debtor about the work done and amount payable showing ....
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....under Section 18, is that the writing concerned must contain an admission of a subsisting liability. A mere admission of past liability is not sufficient to constitute such an 'acknowledgement'. 18. In 'J.C. Budhraja V/s Chairman, Orissa Mining Corporation Ltd. and Anr., 2008 2 SCC', the Hon'ble Supreme Court observed:- "It is now well settled that a writing to be an acknowledgement of liability must involve an admission of a subsisting jural relationship between the parties and a conscious affirmation of an intention of continuing such relationship in regard to an existing liability. The admission need not be in regard to any precise amount nor by expressed words. If a defendant writes to the plaintiff requesting him to send hi....
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.... the parties. Substantial liability having been already accepted by the Corporate Debtor in writing and intention of continuing with relationship in the record, we hold that the Corporate Debtor has treated and acknowledged the liability consciously and admitted liability to pay on reconciliation. 21. In view of aforesaid position of law and the facts we hold that the claim of the Operational Creditor is not barred by limitation, there being continuous cause of action and the Corporate Debtor cannot take plea that there is no debt payable to Operational Creditor in law. We find no merit in this appeal. It is dismissed. No cost. ============= Document 1 FERNAS FERNAS Construction India Pvt. Ltd. 153 (e) 59 Cyber Termce. B....