V.P. Singh JUDGMENT
Bansi Lal Bhat, J. (Member (J))
1. The limited question involved in this appeal is whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "I&B Code") filed by Respondent No. 1-'Edelweiss Asset Reconstruction Company Limited'- ('Financial Creditor') is barred by limitation.
2. Application filed by the 'Financial Creditor' seeking initiation of 'Corporate Insolvency Resolution Process' in respect of Respondent No. 2 'M/s. K.K. Kadri Paper Mills Pvt. Ltd.' ('Corporate Debtor') for alleged default in discharge of liability in respect of financial debt to the tune of Rs. 44,51,74,964/- came to be admitted in terms of the impugned order dated 25th July, 2019 passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad which is primarily challenged on the ground that the application is barred by limitation. For understanding the controversy raised in appeal, it would be appropriate to advert to the factual matrix of the case in brief.
3. The 'Corporate Debtor' approached the Bank of Baroda in 2011 to extend credit facilities for promoting its business. The said Bank sanctioned loan in the form of Cash Credit, Letter of Credit and various Term Loan Facilities amounting to Rs. 14.80 Crores to the 'Corporate Debtor' vide Sanction Letter dated 6th January, 2011. The loan was secured by executing various documents by the 'Corporate Debtor'. However, the 'Corporate Debtor' failed to repay the loan amount despite demand by the 'Financial Creditor'. The 'Corporate Debtor' executed letters of continuing security/revival letters dated 18th January, 2011 and 11th May, 2012 as also letters acknowledging its liability on 9th May, 2012 and 11th May, 2012. This was supported by the Resolution of the Board of Directors of the 'Corporate Debtor'. The 'Bank of Baroda', vide Assignment Agreement dated 26th March, 2014 assigned the debts of the Respondent Company to the 'Financial Creditor' who worked out the liability of the 'Corporate Debtor' to the tune of Rs. 44,51,74,964/- as on 31st July, 2018 which was payable and the 'Corporate Debtor' defaulted in discharging its outstanding liability.
4. It is contended on behalf of the Appellant that neither the document dated 20th August, 2014 nor the document dated 13th November, 2015 or the OTS dated 02nd December, 2015 amount to acknowledgment under Section 18 of the Limitation Act, 1963 and even if such document is assumed to have the character of acknowledgment of debt on the part of the 'Corporate Debtor', such acknowledgment and payment of Rs. 1,47,50,000/- made in pursuance of OTS having been made after the expiry of limitation period would not extend the period of limitation as the claim of the 'Financial Creditor' would be barred by limitation. It is worth mentioning that the Appellant has not disputed any document or communication inter se the parties including the letter dated 20th August, 2014 filed by the 'Financial Creditor'. It is thus evident that making of part payment on 5th December, 2015 and 31st March, 2016 alluded to by the 'Financial Creditor' in its affidavit dated 24th October, 2019 as having been effected in pursuance of the OTS dated 02nd December, 2015, is not disputed, rebutted or controverted by the 'Corporate Debtor', who harps on the tune of the application un........