Email cannot be viewed as acknowledgment of liability by Corporate Debtor hence cannot help in extending limitation period

G.L. Shoes Vs Action Udhyog Private Limited (NCLAT Delhi)

NCLAT Delhi held that the email of 05.05.2017 cannot be viewed as an acknowledgment of liability on the part of the Corporate Debtor and hence cannot help in extending the period of limitation.

Facts- The present appeal filed under Section 61 of Insolvency and Bankruptcy Code, 2016 (“IBC”) by the Appellant arises out of the Order dated 06.06.2022 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Court-II) in CP (IB) No. 345 (NB)/2020.

By the Impugned Order, the Adjudicating Authority has dismissed the Section 9 application filed by the Operational Creditor-M/s G.L. Shoes (the present Appellant) seeking initiation of Corporate Insolvency Resolution Process (‘CIRP’) against Corporate Debtor-Action Udhyog Private Limited (the present Respondent). Aggrieved by this impugned order, the present appeal has been preferred by the Operational Creditor.

Conclusion- We, therefore, agree with the Adjudicating Authority that merely because a document is sent via electronic mode instead of physical mode, the legal and mandatory requirements of authentication of documents will not change and cannot be dispensed away.

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