ICICI Bank Ltd. v. Raipur Manufacturing Company & Ors.

Facts:

Arguments by the Appellant:

Order:

The appeal was allowed, and the impugned judgment of the DRT dated 23/11/2015, dismissing the O.A. on the ground of limitation, was set aside. The O.A. was allowed as prayed, and a recovery certificate was issued in favor of the Applicant/Appellant as trustees for the Debenture holders and against the borrower company acting through the Official Liquidator, High Court of Gujarat. The Official Liquidator was directed to pay a sum of ₹40,29,46,274.13, being the amount due to the Debenture holders in respect of the first and second series of debentures and remuneration due to the trustees, together with interest at 6% per annum from the date of filing the O.A. until realization and costs. The amount was to be recovered from the borrower company through the Official Liquidator from the movable and immovable assets belonging to the borrower company, as described in Schedules I and II of the application.

Cases Cited:

Mahabir Cold Storage vs. CIT 1991 Supp (1) SCC 402

Referred to in the Asset Reconstruction Company case, holding that entries in books of accounts would amount to an acknowledgment of liability under Section 18 of the Limitation Act.

A.V. Murthy vs. B.S. Nagabasavanna (2002) 2 SCC 642

Referred to in the Asset Reconstruction Company case, holding a similar view as Mahabir Cold Storage.

Bengal Silk Mills Co. Vs. Ismail Golam Hossain Ariff AIR 1962 Cal 115

Held that if the balance sheet contains an admission of liability, the agent who makes and signs it intends to make those admissions, and they do not seem to be acknowledgments merely on the ground of being made in the discharge of statutory duty.

Sections and Laws Referred:

Limitation Act, 1963

Section 18: Acknowledgment of debt extends the period of limitation.

Section 19: An acknowledgment of debt need not be made to the creditor nor amount to a promise to pay the debt.

Article 62: Suit to enforce payment of money secured by a mortgage or otherwise charged upon immovable property must be filed within 12 years of when the money sued for becomes due.