Benefit u/s 19 of Limitation Act Applicable on Last Payment Made by Corporate Debtor Within Period of Limitation: NCLAT

The NCLAT ruled that the benefit of the Limitation Act applies to the last payment made by the corporate debtor within the period of limitation. The decision clarifies that if a debtor makes a payment within the limitation period, it resets the clock for the limitation period on recovery of dues. This ruling has significant implications for creditors seeking to recover debts under the Insolvency and Bankruptcy Code (IBC), as it provides them with an extended timeline to initiate legal proceedings. The application of the Limitation Act ensures that creditors have a fair opportunity to pursue claims when payments are made close to the end of the limitation period.