In Brief
SVG Fashions sold textiles to Arpita Filaments, an insolvent company, from 2013 onwards. After issuing a demand notice in 2018, SVG filed an insolvency petition under Section 9 of the Code. The NCLT admitted the petition, finding acknowledgment of the debt through a September 2015 letter and cheques. On appeal, the NCLAT reversed this, holding the claim barred by limitation. The Supreme Court allowed SVG's appeal, holding that the NCLAT failed to properly examine the September 2015 letter as acknowledgment under the Limitation Act, and remanded the matter for fresh consideration with proper application of Section 18 of the Limitation Act, 1963."
The lawyer headnote and full judgment text are available to registered users.