In Brief
Axis Bank Limited challenged the NCLAT's decision admitting a Section 7 IBC petition filed by State Bank of India (SBI) against Shreem Corporation Limited (the corporate debtor) on limitation grounds. SBI declared the debtor as NPA on 28.06.2013; the standard three-year limitation would expire on 31.03.2016. However, the debtor acknowledged the debt in its balance sheet for the year ending 31.03.2015 and in three one-time settlement proposals (16.03.2017, 01.01.2018, 16.05.2019). The Supreme Court held that each acknowledgment restarts a fresh three-year limitation period under Section 18 of the Limitation Act, and SBI's petition filed on 22.01.2020 was within the extended period. The Court dismissed the appeal, affirming that balance sheets and settlement proposals constitute valid acknowledgments, and that additional documents may be filed even at appellate stages if they relate to core admissibility issues under the IBC.
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