NCLAT Finds Insolvency Plea Within Limitation Citing Debt Acknowledgment and COVID Exclusion

The NCLAT (National Company Law Appellate Tribunal) found an insolvency plea to be within the limitation period, citing acknowledgment of debt by the corporate debtor and the exclusion period granted due to the COVID-19 pandemic. The appellate tribunal considered evidence of debt acknowledgment, which can extend the limitation period under the Insolvency and Bankruptcy Code (IBC). Additionally, the NCLAT factored in the Supreme Court's directives regarding the exclusion of the pandemic period from limitation calculations. This ruling highlights the importance of both debt acknowledgment in reviving limitation and the judicial recognition of the COVID-19 pandemic's impact on legal timelines within the context of insolvency proceedings. The order provides clarity on how these factors are considered in determining the admissibility of insolvency applications.