Emails from corporate debtor without containing acknowledgement of debt didn’t extend limitation for filing plea u/s 9

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  • Last Updated on 20 July, 2022

acknowledgment of debt

Case Details: Mohan Lal Goel v. National Skill Development Corporation - [2022] 140 144 (NCLAT-New Delhi)

Judiciary and Counsel Details

    • Justice Ashok Bhushan, Chairperson, Dr Alok Srivastava & Shreesha Merla, Technical Member
    • Suraj Kr. VishwakarmaNeeraj Kr. Gupta, Advs. for the Appellant.
    • Ms Gunjan Sinha JainMs Aparna Gupta, Advs. for the Respondent.

Facts of the Case

In the instant case, an appeal was filed against the order passed by the Adjudicating Authority (NCLT), by which an application made by the appellant as an Operational Creditor u/s 9 of the IBC, 2016 was rejected on the ground that the application was time-barred.

The appellant was an employee of the corporate debtor. The appellant sent a demand notice u/s 8 of the IBC, 2016 demanding salary for the unpaid notice period. Thereafter, the appellant filed an application u/s 9 of the IBC, 2016 on 13.03.2020 for the default dated 30.12.2016.

The Adjudicating Authority (NCLT) rejected the said application holding that the same was barred by limitation. Thereafter, an appeal was made to the National Company Law Appellate Tribunal (NCLAT) against the order passed by the National Company Law Tribunal (NCLT).

The appellant submitted that the Adjudicating Authority committed an error in not considering the acknowledgment which was received by the appellant giving the benefit of Section 18 of the Limitation Act. Further, he submits that the period of limitation got extended by virtue of e-mails that were sent on 26.03.2017 and 27.04.2017. As per the appellant, these emails amount to an acknowledgement of debt.


The NCLAT observed that it had been clearly mentioned that debt fell due on 30.12.2016 whereas the application was filed beyond three years from the date when the debt fell due.

The submission which was pressed by the appellant was regarding extension of limitation by virtue of the e-mails dated 26.03.2017 and 27.04.2017. The NCLAT held that since the said e-mails didn’t contain any acknowledgement, which could be read as an acknowledgement of accepting debt within the meaning of section 18 of the Limitation Act.

Further, the NCLAT held that since section 18 of the Limitation Act had no applicability in the instant case, an application filed u/s 9 of the IBC by the appellant could not have been entertained and had been rightly rejected by the NCLT.

Accordingly, the appeal was to be dismissed.

List of Cases Reviewed

    • Order of NCLT – New Delhi dated 1-12-2021 (para 10) affirmed.

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