AP High Court: Plaint cannot be thrown out as time-barred without trial where an insolvency petition may amount to an acknowledgment of debt
The question: Can mention of a creditor and the amount due in the debtor's insolvency petition amount to an acknowledgment under Section 18 of the Limitation Act?
A lender sued to recover Rs 4 lakh on a 2021 promissory note. The trial court at Jammalamadugu rejected the plaint as time-barred, because the debtor's later insolvency petition listing the lender as a creditor was, it said, only an admission and not an acknowledgment that extends limitation. The High Court set that order aside and sent the case back.