Part Payment by Corporate Debtor Extends Limitation Period for Filing Insolvency Application: NCLAT [Read Order]

The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) at New Delhi recently ruled that a part payment made by the corporate debtor to the operational creditor against the total debt constitutes an acknowledgment of debt under the Limitation Act, 1963, thereby extending the limitation period for filing an insolvency application under the…

Not so fast: Disputed debts and arbitration clauses as a shield against insolvency proceedings

The decision in Kwale International Sugar Company Limited v Epco Builders Limited and Two Others [2025] KECA 227 (KLR) reinforces the principle that insolvency proceedings must be reserved for clear cases of inability to pay and cannot be used as leverage in unsettled construction disputes. It also clarifies the boundaries between private dispute resolution mechanisms and…