2022 (2) TMI 965

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....dated 25/02/2021 passed by the Learned Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court-IV, New Delhi) in C.P. (IB) No. 3005(ND)/2019, M/s. Canara Bank, preferred this Appeal. By the Impugned Order, the Adjudicating Authority has dismissed the Application filed under Section 7 of the Insolvency and Bankruptcy Code (hereinafter referred to as 'the Code') by M/s. Canara Bank/the Appellant on the ground that it was 'barred by Limitation'. The Adjudicating Authority relied on the Judgement of this Tribunal in 'Ishrat Ali' Vs. 'Cosmos Cooperative Bank Ltd. & Anr.' Company Appeal (AT) (Insolvency) No. 1121 of 2019 and observed in para 16 of the Impugned Order as follows: "16. In the light of the aforementione....

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....ccount of the Respondent was declared as NPA on 05/04/2008, but the same was restructured on various occasions within the period of three years, which automatically extends the Limitation to the 'date of acknowledgement', of the OTS. The Learned Counsel in support of his submissions placed reliance on the following Judgements:- 'Vashdeo R. Bhojwani' Vs. 'Abhyudaya Cooperative Bank Ltd. & Anr.' Civil Appeal No. 11020 of 2018. 'M/s. Ugro Capital Ltd.' Vs. 'Bangalore Dehydration and Drying Equipment Co. Pvt. Ltd. (BDDE)' Company Appeal (AT) (Insolvency) No. 984 of 2019. 'Sesh Nath Singh & Anr.' Vs. 'Baidyabati Sheoraphuli Cooperative Bank Ltd. & Anr.' Company Appeal (AT) (Insolvency) No. 672 of 2019. 'Sesh N....

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....ples laid down by the Hon'ble Supreme Court in 'Asset Reconstruction Company (India) Limited' Vs. 'Bishal Jaiswal & Anr.' AIR 2021 SC 5249 and in 'Dena Bank (Now Bank of Baroda)' Vs. 'C. Shivkumar Reddy & Anr.' (2021) 10 SCC 330, in which the Hon'ble Supreme Court has discussed in detail, the applicability of Sections 18 and 19 of the Limitation Act, 1963. It is apposite to reproduce the relevant paragraph of 'Dena Bank (Now Bank of Baroda)' (Supra) detailed as hereunder: "138. While it is true that default in payment of a debt triggers the right to initiate the corporate resolution process, and a petition under Section 7 or 9 IBC is required to be filed within the period of limitation prescribed by law, which in this case would be....

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....ebtor as NPA, if there were an acknowledgment of the debt by the corporate debtor before expiry of the period of limitation of three years, in which case the period of limitation would get extended by a further period of three years. 141. Moreover, a judgment and/or decree for money in favour of the financial creditor, passed by the DRT, or any other tribunal or court, or the issuance of a certificate of recovery in favour of the financial creditor, would give rise to a fresh cause of action for the financial creditor, to initiate proceedings under Section 7 IBC for initiation of the corporate insolvency resolution process, within three years from the date of the judgment and/or decree or within three years from the date of issuanc....