NCLAT Held That A Party Cannot Extend Period Of Limitation Under Section 18 Of Limitation Act By Relying On Own One-Time Settlement Proposal

The National Company Law Appellate Tribunal, Principal Bench (“NCLAT”) through its order dated 21.08.2026, in Kanta Gupta vs. Bank of India & Ors.¹, held that one-time settlement (“OTS”) proposal made by a party cannot be used by the same party to extend period of limitation under Section 18 of the Limitation Act, 1963 (“Limitation Act”).

The Court observed that Section 18 of the Limitation Act pertains to getting the benefit of the acknowledgement made in writing by the opposite party against whom some right is being claimed, however, the same could not be claimed by the person on the basis of an acknowledgement which has been given by the person themselves.

Footnote

^{1. Company Appeal (AT) (Insolvency) No. 1058 of 2026.}

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