Acknowledgement of debt extends limitation for IBC filings; recovery certificate or decree creates fresh cause of action to initiate CIRP.
An acknowledgment in writing by a corporate debtor of a subsisting liability restarts the limitation period for initiating CIRP; a final judgment, decree or a recovery certificate, if dues remain unpaid, gives rise to a fresh cause of action permitting a financial creditor to initiate insolvency proceedings within the applicable limitation period measured from the date of that judgment, decree or certificate. Limitation questions are mixed fact and law issues requiring pleaded facts and evidence, and pleadings in an insolvency petition may be amended or supplemented when appropriate.