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 Insolvency and Bankruptcy Code, 2016 (IBC).
The finding came while the NCLAT dismissed an appeal by Ramniwas B. Somany, suspended director of Indian Denim Limited, challenging an order passed by the Ahmedabad Bench of the NCLT order on 22 September 2023, admitting a Section 9 application filed by the operational creditor Anushri Paper Pack Pvt. Ltd against Indian…