2022 (10) TMI 437

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....tik, Advocates for R2 JUDGMENT Per : Justice Rakesh Kumar Jain : This appeal is directed against the order dated 17.07.2020 passed by the Adjudicating Authority (National Company Law Tribunal, Kolkata Bench, Kolkata) by which an application bearing I.A. (IB) No. 569/KB/2020 filed in CP (IB) No. 1290/KB/2018 by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (in short 'Code') requiring the Corporate Debtor i.e. 'Jas Infrastructure and Power Limited' to be liquidated in terms of the provisions of Chapter III, Part II of the Code has been allowed. 2. In brief, the Corporate Debtor, in order to set up a 1320 MW (2x660 MW) supercritical Coal based Thermal Power Project at Siriya Village, Baunsi B....

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....ting Authority on the ground that the outstanding amount of default has been reflected in the balance sheet of the Respondent No. 2 as on 31.03.2016 which amounts to acknowledgment in terms of Section 18 of the Act and thus, the limitation would start running from 31.03.2016 and since the application under Section 7 was filed on 11.09.2018, therefore, the same was within the period of limitation and hence, the application was admitted and further proceedings in terms of Section 13 and 14 were initiated. 4. It has come on record that the Appellant had filed an application i.e. I.A (IB) No. 360/KB/2020 for recalling of the order dated 16.10.2019 but the same was dismissed on 02.03.2020 on the ground that the Tribunal had no power to recall i....

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....t No. 1 within a period of limitation. 8. On the other hand, Counsel for Respondent No. 1 has submitted that once the outstanding amount has been shown in the balance sheet of the Appellant, the limitation would start from the said date on the premise that the debt has been acknowledged by the Appellant and in this regard reliance has placed upon the decision of the Hon'ble Supreme Court in the case of Asset Reconstruction Company Vs. Bishal Jaiswal & Anr. 2021 SCC Online SC 321. 9. We have heard Counsel for the parties and perused the record with their able assistance. 10. The only issue raised by the Appellant in this appeal is about the correctness of the approach of the Adjudicating Authority in opining that the period of limitation ....

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....owledgement within the meaning of Section 18 of the Limitation Act. In Rishi Pal Gupta v. S.J. Knitting & Finishing Mills Pvt. Ltd. 73 (1998) DLT 593, the same view was taken. The last two decisions were cited by Geeta Mittal, J. in S.C. Gupta v. Allied Beverages Company Pvt. Ltd. (decided on 30/4/2007) and it was held that the acknowledgement made by a company in its balance sheet has the effect of extending the period of limitation for the purposes of Section 18 of the Limitation Act. In Ambika Mills Ltd. Ahmedabad v. CIT Gujarat (1964) 54 ITR 167, it was further held that a debt shown in a balance sheet of a company amounts to an acknowledgement for the purpose of Section 19 of the Limitation Act and in order to be so, the balance sheet ....