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Judgment
O R D E R
06.09.2022: This appeal is directed against the order dated 19.12.2019 passed by the National Company Law Tribunal, Mumbai Bench, Court No. IV, dismissing an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2019 (Code) by the Appellant on the ground of being barred by limitation.
Shorn of unnecessary details, Counsel for the Appellant has submitted that the application under Section 9 of the Code was filed on 22.07.2019 whereas the last invoice was dated 08.04.2013. It is submitted that though the period of limitation to prefer the application had expired in terms of Article 137 of the Limitation Act, 1963 (the ‘Act of 1963’) but the time barred of debt of the Appellant was made good by the Respondent by entering into a settlement on 15.02.2018. It is, thus, submitted that the period of limitation had started again from 15.02.2018 in terms of Section 25(3) of the Contract Act, 1872 (the ‘Act’).
Counsel for Respondent has fairly conceded about entering into settlement dated 15.02.2018 which is part of record. Counsel for Respondent has though argued vehemently in support of the impugned order passed by the Tribunal but he could not deny the fact of execution of the settlement dated 15.02.2018 as per which the Respondent had admitted its liability of the amount involved towards the Appellant.
We have heard Counsel for the parties and perused the record with their able assistance.
From the resume of the facts, it is apparent that the claim set up by the Appellant is on the basis of the last invoice dated 08.04.2013, the application filed under Section 9 on 22.07.2019 was barred by limitation as the period of three years provided in the residuary Article 137 of the Act of 1963 had expired on 08.04.2016. However, the time barred debt was again admitted by the Respondent by way of a settlement dated 15.02.2018 and in view of Section 25(3) of the Act, the limitation had again started from the said date and thus, the application filed under Section 9 of the Code on 22.07.2019 is well within limitation.
No other point has been raised.
In view of the aforesaid discussion, the present appeal is hereby allowed and the impugned order is set aside. The matter is remanded back to the Ld. Tribunal to consider the application filed under Section 9 of the Code by the Appellant to be within limitation and decide the same in accordance with law.
The parties are directed to appear before the concerned Tribunal on 23rd September, 2022.