Super Floorings Pvt. Ltd. Vs Napin Impex Ltd. (NCLAT Delhi)
NCLAT Delhi held that benefit of extension of limitation under section 19 of the Limitation Act entitled to the operational creditor since last payment was made within period of three years and the same was acknowledged in writing by Corporate Debtor. Accordingly, application u/s. 9 rightly rejected.
Facts- This Appeal by a Corporate Debtor has been filed challenging the order dated 05.07.2024 passed by the Adjudicating Authority (National Company Law Tribunal) Chandigarh. By the impugned order, the Adjudicating Authority has rejected the preliminary objections raised by the Corporate Debtor that application under Section 9 filed by the Operational Creditor is barred by time. The Corporate Debtor aggrieved by the order has come up in this Appeal.
Conclusion- Held that in the present case, last payment was admittedly made on 08.2019 i.e. within the period of three years and there is also acknowledgment by the Corporate Debtor in writing which is reflected from the reply to demand notice as noted above. When there is clear acknowledgment by the corporate debtor of last payment made on 26.08.2019 which payment was within the period of three years, we are of the view that the operational creditor was clearly entitled for the benefit of extension of limitation under Section 19 of the Limitation Act and both the conditions which are required to be fulfilled under Section 19 were fulfilled. We, thus, do not find any error in the order of the Adjudicating Authority rejecting the objection of the corporate debtor that application under Section 9 was barred by time. Giving the benefit of last date of payment on 26.08.2019, the application was well within limitation. We do not find any merit in the Appeal. The Appeal is dismissed.
