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MANOJ MISRA, K. V. VISWANATHAN
IL & FS Financial Services Limited – Appellant
Versus
Adhunik Meghalaya Steels Private Limited – Respondent
| Table of Content |
|---|
| 1. loan details and acknowledgment. (Para 2 , 3 , 4) |
| 2. appellant's argument on acknowledgment. (Para 5 , 13) |
| 3. court analysis on acknowledgment validity. (Para 6 , 24 , 41) |
| 4. balance sheet as an acknowledgment of debt. (Para 11) |
| 5. acknowledgment of debt underlimitation act (Para 12 , 18 , 19 , 20) |
| 6. nclt and nclat decisions on limitation (Para 15 , 16) |
| 7. contents of the reply and contestation of the acknowledgment. (Para 17) |
| 8. key question on limitation period (Para 21) |
| 9. section 18 of limitation act principles. (Para 22 , 25) |
| 10. entries in balance sheet as acknowledgment (Para 33 , 35) |
| 11. legal framework surrounding acknowledgment under limitation act. (Para 39 , 40) |
| 12. conclusion on application timeliness. (Para 46 , 47) |
JUDGMENT :
1. The short question that arises for consideration is whether the National Company Law Appellate Tribunal (for short ‘NCLAT’) and the National Company Law Tribunal (for short ‘NCLT’) were justified in dismissing the Section 7 application filed by the appellant against the respondent under the Insolvency and Bankruptcy Code, 2016 (for short ‘IBC’), on the ground that the same was being barred by limitation.
2. According to the appellant, o
The balance sheet can constitute a valid acknowledgment of debt under Section 18 of the Limitation Act, even without explicitly mentioning the creditor's name, provided it reveals a jural relationshi....
(1) Initiation of Corporate Insolvency Resolution Process (CIRP) – Period of limitation for making application under Section 7 or 9 of IBC is three years from the date of accrual of right to sue, tha....
Initiation of Corporate Insolvency Resolution Process - Balance sheet acknowledging debt is also a document relevant for calculating limitation.
Acknowledgment of debt in balance sheets and OTS proposals can extend the limitation period for initiating CIRP under the IBC.
Acknowledgment of debt through balance sheets and restructuring efforts extends limitation under Section 18 of the Limitation Act; thus, a Section 7 application under IBC remains valid even if initia....
The main legal point established in the judgment is the allowance of amendment of the application under Section 7 to incorporate the case based on acknowledgement as contained in the balance sheets o....
The provisions of Section 18 of the Limitation Act are applicable to proceedings under the Insolvency and Bankruptcy Code, and an acknowledgement in a balance sheet without a qualification can extend....
(1) Acknowledgement of liability that is made in a balance sheet can amount to an acknowledgement of debt. Though filing of a balance sheet is by compulsion of law, acknowledgement of a debt is not n....
(1) In computing period of limitation for initiation of CIRP proceedings, time spent in pursuing remedy under SARFAESI Act or any other recovery law cannot be excluded.(2) IBC is essentially a statu....
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