{"id":252965,"date":"2021-08-20T10:00:36","date_gmt":"2021-08-20T04:30:36","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=252965"},"modified":"2021-08-27T11:04:31","modified_gmt":"2021-08-27T05:34:31","slug":"nclat-acknowledgment-is-based-on-neighboring-circumstances-and-has-nothing-to-do-with-the-form-rejects-appeal","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/20\/nclat-acknowledgment-is-based-on-neighboring-circumstances-and-has-nothing-to-do-with-the-form-rejects-appeal\/","title":{"rendered":"NCLAT | \u2018Acknowledgment\u2019 is based on neighboring circumstances and has nothing to do with the form-Rejects Appeal"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>National Company Law Appellate Tribunal\u00a0 (NCLAT):<\/strong> The Coram of Justice Venugopal M (Judicial Member) and V.P. Singh (Technical Member) while setting aside an appeal opined that<\/p>\n<p style=\"text-align: justify;\"><em>\u201c\u2026this Tribunal an irresistible, inevitable and inescapable conclusion that in respect of the loan account of the \u2018Corporate Debtor\u2019, there was an \u2018Acknowledgement of Debt\u2019 as per Section 18 and 19 of the Limitation Act, 1963\u201d.<\/em><\/p>\n<p style=\"text-align: justify;\">In the instant appeal, the Appellant was the Suspended Director of corporate debtor, controlling the majority of shareholding 100% of the paid-up capital of Saptarishi Hotels Private Limited (\u2018Corporate Debtor\u2019) through its holding Company, Maha Hotels Projects Private Ltd. The appellant filed an appeal against the impugned order of the National Company Law Tribunal, Hyderabad Bench, Hyderabad wherein the Tribunal had observed that the \u2018Financial Creditor\u2019 had established the \u2018debt and default\u2019 through various documents filed along with the Applications and ultimately, admitted the \u2018Application\u2019 by declaring the \u2018Moratorium\u2019 and issued necessary directions thereto. The counsel for the appellant contended that the adjudicating authority\u2019 had no jurisdiction to admit the \u2018Corporate Debtor\u2019 for \u2018Corporate Insolvency Resolution Process\u2019 in spite of the fact the same being barred by \u2018Limitation\u2019.<\/p>\n<p style=\"text-align: justify;\">The Tribunal while taking into account the \u2018acknowledgment\u2019 so rendered stated,<\/p>\n<p style=\"text-align: justify;\"><em>\u201c\u2026that Section 18 of the Limitation Act, 1963 does not enjoin that an \u2018acknowledgement\u2019 has to be in any particular form or to be express. It must be borne in mind that an \u2018acknowledgement\u2019 is to be examined resting upon the attendant circumstances by an admission that the writer owes a \u2018Debt\u2019. No wonder, an \u2018Unconditional Acknowledgement\u2019 implies a promise to pay because that is the natural inference if there is no other contrary material\u201d. <\/em><\/p>\n<p style=\"text-align: justify;\">Further, to treat the writing signed by an individual as an \u2018Acknowledgement\u2019, the person acknowledging must be conscious of his liability and the commitment ought to be made in respect of that liability.<\/p>\n<p style=\"text-align: justify;\">And considering the sum of Rs.15,262.75 was paid by the \u2018Corporate Debtor\u2019 after which the due amount was Rs 144,02,51,063.09,\u00a0 concluded that<\/p>\n<p style=\"text-align: justify;\"><em>\u201c\u2026this tribunal comes to an irresistible, inevitable and inescapable conclusion that in respect of the loan account of the \u2018Corporate Debtor\u2019, there was an \u2018Acknowledgement of Debt\u2019 as per Section 18 and 19 of the Limitation Act, 1963\u201d.<\/em><\/p>\n<p style=\"text-align: justify;\">[Lakshmi Narayan Sharma v. Punjab National Bank, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/5lW7jgd9\"><b>2021 SCC OnLine NCLAT 155<\/b><\/a>, decided on 12-05-2021]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Counsels for the Parties:<\/strong><\/p>\n<p style=\"text-align: justify;\">For Appellant :<\/p>\n<p style=\"text-align: justify;\">Mr. Rajashekar Rao, Sr. Advocate<\/p>\n<p style=\"text-align: justify;\">For Mr. Suraj Prakash, Mrinal Lotoria, Advocates<\/p>\n<p style=\"text-align: justify;\">For Respondents:<\/p>\n<p style=\"text-align: justify;\">Shri T.Ravichandran, Advocate<\/p>\n<p style=\"text-align: justify;\">Shri T.S.N.Raja, PCA<\/p>\n<p style=\"text-align: justify;\">(Interim Resolution Professional)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Company Law Appellate Tribunal\u00a0 (NCLAT): The Coram of Justice Venugopal M (Judicial Member) and V.P. Singh (Technical Member) while setting aside <\/p>\n","protected":false},"author":67011,"featured_media":153604,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[46789,30596,29785],"class_list":["post-252965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-acknowledgment","tag-corporate-debtor","tag-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>NCLAT | \u2018Acknowledgment\u2019 is based on neighboring circumstances and has nothing to do with the form-Rejects Appeal | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/20\/nclat-acknowledgment-is-based-on-neighboring-circumstances-and-has-nothing-to-do-with-the-form-rejects-appeal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NCLAT | \u2018Acknowledgment\u2019 is based on neighboring circumstances and has nothing to do with the form-Rejects Appeal\" \/>\n<meta property=\"og:description\" content=\"National Company Law Appellate Tribunal\u00a0 (NCLAT): The Coram of Justice Venugopal M (Judicial Member) and V.P. 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