Last Payment Made By Corporate Debtor Within Period Of Limitation Amounts To Acknowledgment U/S 19 Of Limitation Act: NCLAT

The NCLAT ruled that a last payment made by a corporate debtor within the limitation period amounts to an acknowledgment under Section 19 of the Limitation Act. This case dealt with a creditor’s claim where the debtor made a final payment within the limitation period, which the creditor argued should reset the limitation clock. The NCLAT upheld this view, stating that the payment serves as an acknowledgment of the debt, thereby extending the time for filing a claim. This ruling clarifies how payments made during the limitation period can affect the legal timeline for claims.