Supreme Court highlights the distinction between an acknowledgment of debt under the Limitation Act, 1963 and a promise to pay a time barred debt under Indian Contract Act, 1872, in respect of application to initiate corporate insolvency resolution process under Insolvency and Bankruptcy Code, 2016

The Supreme Court in its recent judgement Kotak Mahindra Bank Limited v. Kew Precision Parts Private Limited & Others1, has held that an application to initiate corporate insolvency resolution process (“CIRP”) against a corporate debtor is maintainable in respect of a time barred debt, if the debtor has after the expiry of the limitation period, agreed to repay the same. 

Brief Facts

Filed under:
India, Company & Commercial, Insolvency & Restructuring, Litigation, JSA, Insolvency, Recovery of Debts and Bankruptcy Act 1993 (India), Insolvency and Bankruptcy Code (India), National Company Law Tribunal
Authors:
Vinod Kumar , Srinivasan M.D
Location:
India
Firm:
JSA