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Informative

Limitation Period can be reset When Pleadings regarding Part Payments supported by Written Acknowledgment: NCLAT

Update / Judgement Date

10 Sept 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy CodeOther Legal Matters

The NCLAT has ruled that a "limitation period can be reset" when "pleadings regarding part payments are supported by a written acknowledgment." This decision provides crucial clarity on the application of the Limitation Act within the context of the IBC. The ruling, a significant victory for the government, clarifies that a company can be held responsible for the misdeeds of another person.