TaxTMI 
TaxTMI 
2021 (4) TMI 50
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....l has been filed by the Appellant-Erstwhile Director of Bothra Metals and Alloys Ltd-Corporate Debtor. 2. Syndicate Bank had filed Application C.P. (IB) No. 2579/MB.IV/2019 before the Adjudicating Authority (NCLT) Mumbai Bench - IV against the Corporate Debtor. Syndicate Bank is now amalgamated with the Respondent-Canara Bank. 3. The Application was filed under Section 7 of Insolvency and Bankruptcy Code, 2016 (IBC in short). The Financial Creditor Bank referred to the financial assistance provided to the Corporate Debtor by way of Cash Credit, Letter of Credit, Term Loan and Forward Cover. The Corporate Debtor had executed necessary documents. The Financial Creditor claimed that there was total debt due and outstanding against the Co....
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....ere admittedly given by the Corporate Debtor, concluded that the debt was not time-barred. Learned Counsel submits that there are various Judgments of the Hon'ble High Courts as well as Hon'ble Supreme Court which show that debt acknowledged in the books of accounts or balance-sheets can be treated as acknowledgments for extension of limitation under Section 18 of Limitation Act, 1963. 8. The Learned Counsel for the Appellant accepts that the Appellant has not filed copy of the Application under Section 7 of IBC which was filed before the Adjudicating Authority. It is also accepted that even the copies of balance-sheets which were filed before the Adjudicating Authority and which are considered by Adjudicating Authority have not been fil....
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....Plans and Resolution Plans marked and annexed to as "Annexure -L to L-4." 11. Perusal of the Impugned Order shows that the Adjudicating Authority considered this defence taken by the Corporate Debtor and the Adjudicating Authority in Paragraphs 10 and 13 of the Impugned Order observed as under: "10. Upon perusal of the documents on record, it is seen that there is acknowledgment of debt in the balance sheet of the corporate debtor all along. It is well-settled through various judgments of the Hon'ble Supreme Court now that an acknowledgment in the balance sheet of the company satisfies the requirements of Section 18 of the Limitation Act, 1963, leading to a fresh period of limitation commencing from each such acknowledgement. Fu....
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....t subsisting liability, made in writing in respect of any right claimed by the opposite party and signed by the party against whom the right is claimed, has the effect of commencing of a fresh period of limitation, from the date on which the acknowledgment is signed. However, the acknowledgment must be made before the period of limitation expires. .............................................................................. 88. An Adjudicating Authority under the IBC is not a substitute forum for a collection of debt in the sense it cannot reopen debts which are barred by law, or debts, recovery whereof have become time barred. The Adjudicating Authority does not resolve disputes, in the manner of suits, arbitrations and ....