2022 (8) TMI 1563

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....by which an application filed by the present Appellant (UCO Bank) as the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (in short 'Code') against Xenitis Infotech Ltd. (Corporate Debtor) has been dismissed only on the ground of limitation. 2. The Adjudicating Authority, while dismissing the application, has observed that as per Article 137 of the Limitation Act, 1961 (in short 'the Act') the application, may be under Section 7 or 9 of the Code, can be filed only within a period of three years from the date of the accrual of default and since in the present case, the default had occurred on 06.03.2010, therefore, the limitation would expire on 06.03.2013, whereas the application was filed on 31.08.2018. It....

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....as requested that written arguments has been filed by the Respondent may take into consideration. 5. We have heard Counsel for the parties and perused the record. 6. The issue is involved in this case travels into a narrow compass as to whether a promise made by the debtor to pay the time barred debt would fall within the purview of Section 25(3) of the Indian Contract Act, 1872 and as to whether the limitation is to start running from the date promise is made, for a period of three years as required under Article 137 of the Act? 7. Before this question is answered we would like to refer to the provisions of Section 25(3) which read as follows:- 25(3). Agreement without consideration, void, unless it is in writing and regi....

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....at after the expiry of period of limitation of three years, prescribed under Article 137 of the Act, if the Respondent has made the promise (commitment) to make the payments of the unpaid time barred debt, approved in the JLM, then it is a sufficient evidence to show the intention of the Respondent for creating a new agreement with the Appellant for the purpose of making payments of the unpaid debts. 10. Insofar as, the written arguments of the Respondent are concerned, suffice it to say that the whole emphasis in the written arguments is upon the expiry of limitation in view of the provision of Section 18 of the Act, on which no argument has been addressed by Sr. Counsel for the Appellant who has changed the face of the case altogether ....