Insolvency Law : Supreme Court Explains Important Principles of IBC, 2016
Application of Limitation Act, 1963 on IBC, 2016
Law on Debt and its Acknowledgment
"In view of Section 238A of the IBC, 2016 that the Limitation Act, 1963 shall, as far as may be, apply to the proceedings under the IBC, 2016. It is also well settled that Article 137 of the first schedule to the Limitation Act providing a period of 3 years from the date when the right to apply accrues will govern the situation. An acknowledgment of debt merely renews the debt and does not create a new right of action. It is further essential that the acknowledgment must relate to a subsisting liability and must indicate the jural relationship between the parties such as that of debtor and creditor, and it must appear that the statement is made with the intention to admit such jural relationship." - IL&FS Financial Service Ltd v. Adhunik Meghalaya Steels Ltd [2025] GCtR 1382 (SC)
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