IL & FS FINANCIAL SERVICES LIMITED vs ADHUNIK MEGHALAYA STEELS PRIVATE LIMITED (SUPREME COURT) 2025 INSC 911
| COURT: | Supreme Court |
| JUDGES: | K.V. VISWANATHAN J., Manoj Misra J. |
| LEGISLATION(S): | Section 18 of the Limitation Act 1963 |
| COUNSEL: | Ramji Srinivasan, Ritin Rai |
| FILE: | Click here to download the file in pdf format |
| Entries in the Balance Sheet constitute valid acknowledgment under Section 18 of the Limitation Act, 1963 even without creditor name | |
(i) It cannot be disputed that entries in Balance Sheets could constitute a valid acknowledgement in view of the categorical pronouncement of the Supreme Court in Asset Reconstruction Co. (India) Ltd. v. Bishal Jaiswal and Another (2021) 6 SCC 366.
(ii) The entry constitutes a valid acknowledgement even if the name of the appellant was not mentioned in the Balance Sheet. In Vidyasagar Prasad v. UCO Bank and Anr., 2024 SCC OnLine SC 2993 the Supreme Court dealt with the earlier judgments in Laxmi Pat Surana v. Union Bank of India, (2021) 8 SCC 481, Dena Bank (now Bank of Baroda) v. C. Shivakumar Reddy and Anr., (2021) 10 SCC 330, and Rajendra Narottamdas Sheth and Anr. v. Chandra Prakash Jain and Anr., (2022) 5 SCC 600 to reiterate that Section 18 of the Limitation Act dealing with acknowledgment of debt applies to proceedings under the IBC in view of Section 238A.