Vipin Shersingh Agarwal Vs State Bank of India & Anr (Supreme Court of India)
Supreme Court of India, in the case of Vipin Shersingh Agarwal vs. State Bank of India, has dismissed an appeal challenging an application filed under Section 95 of the Insolvency and Bankruptcy Code (IBC). The appellant argued that the application was barred by limitation because the default occurred on January 31, 2017. However, the Supreme Court upheld the ruling of the National Company Law Appellate Tribunal (NCLAT), which found the application to be within the limitation period. This was due to an acknowledgment of the debt, which, according to Section 18 of the Limitation Act, 1963, extends the limitation period. The court noted that the plea of debt acknowledgment and the corresponding extension of the limitation period was properly raised and was not disputed. As a result, the Supreme Court concluded that the appeal lacked merit and dismissed it, affirming the NCLAT’s decision. This judgment reinforces the principle that an acknowledgment of debt can extend the period for initiating insolvency proceedings under the IBC.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. Heard learned counsel for the appellant.
2. The only point canvassed before us is that the default had occurred on 31.01.2017 and, therefore, the application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 (‘the Code’) was barred by limitation. The National Company Law Appellate Tribunal (‘NCLAT’) in the impugned order has clearly stated that the application filed under Section 95 of the Code is well within the period of limitation in view of Section 18 of the Limitation Act, 1963 as it stands extended on account of acknowledgment of the debt. Plea of acknowledgement of the debt and the extension of limitation in view of Section 18 of the Limitation Act is well taken in the rejoinder which fact is not denied.
