In Brief
N. Subramanian, a retired employee, sought to initiate insolvency proceedings against his former employer under Section 9 of the Insolvency and Bankruptcy Code for unpaid salary arrears from 1998 to 2013 (Rs. 1.06 crore). The NCLT admitted his petition based on written acknowledgements of liability from 2014. The NCLAT overturned this, finding the claim time-barred and disputed. The Supreme Court allowed the appeal, holding that acknowledgements of liability defeat any claim of dispute and that limitation runs afresh from the last acknowledgement date. Since the petition was filed within three years of the 2014 acknowledgement, the claim was within limitation and the NCLT's decision was upheld.
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