Email Not Carrying Acknowledgement of Debt But Merely Information Couldn’t Help in Extending Limitation | NCLAT
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- Last Updated on 7 November, 2023
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Case Details: Zach System SPA v. Vivid Labs Ltd. - [2023] 155 taxmann.com 364 (NCLAT-Chennai)
Judiciary and Counsel Details
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- Rakesh Kumar Jain, Judicial Member & Ms Shreesha Merla, Technical Member
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Aiyar & Dolia, Advs. for the Appellant.
Facts of the Case
In the instant case, the appellant (i.e. operational creditor) filed a petition under section 9 of the IBC against the respondent (i.e. the corporate debtor). The Adjudicating Authority (NCLT) dismissed the said petition on the ground that the date of default was 13-12-2013 and the petition was filed on 10-2-2020 and, therefore, the same was barred by limitation.
Aggrieved by the NCLT’s order, the appellant filed an instant appeal on the ground that e-mails dated 10-5-2014, 24-10-2016, and 10-1-2017 extended the period of limitation up to 10-1-2020 and the last e-mails dated 11-2-2017 extended period of limitation up to 11-2-2020 and, therefore, the CIRP petition filed under section 9 on 10-2-2020 was within the limitation period.
It was noted that the last e-mail dated 11-2-2017 was not an e-mail regarding the acknowledgement of debt rather it was the only information that the respondent would not be able to respond.
NCLAT Held
The NCLAT held that the said e-mail was of no use to the appellant because the corporate debtor had not acknowledged any debt in said e-mail and, thus, the limitation could not be extended.
Therefore, the impugned order passed by the NCLT rejecting the petition filed under section 9 on the ground that the claim was barred by limitation was free from all legal errors.
List of Cases Reviewed
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- Zambon Co. S.P.A. v. Vivimed Labs Ltd. [2023] 155 taxmann.com 363 (NCLT – Bengaluru) (para 6) affirmed [See Annex].
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