An entry in the company’s balance sheet amounts to an acknowledgment of the debt and extends the period of limitation under section 18 of the Limitation Act, 1963.

R.V. EASWAR, J.

The petitioners Shahi Exports Pvt. Ltd. and Ms. Surabhi Sindhu have filed the company petition for winding up of CMD Buildtech Pvt. Ltd, hereinafter referred to as “the Company”, under section 433(e) read with sections 434 and 439 of the Companies Act, 1956 on the ground that the Company is unable to pay its debts allegedly amounting to Rs.17,05,13,764/-. The petition came to be filed in the following circumstances. On 27.11.2007, a sum of Rs.8 crores was advanced for interest to the Company. Sarla Fabrics Pvt. Ltd. advanced Rs.4 crores and Ms. Surabhi Sindhu advanced the other sum of Rs.4 crores. The agreement was signed by the lenders, the Company as well as two personal guarantors, out of which Sunita Narula, a Director of the Company, was one. The loan was for a period of three months.

2. By orders of this Court dated 24.2.2011, 9.3.2011 and 21.3.2011, Sarla Fabrics Pvt. Ltd. was amalgamated with Shahi Exports Pvt. Ltd., one of the present petitioners. On 28.11.2011, the petition for winding up the company was filed in this Court. Initially, after issuing notice to the Company, there was some effort towards mediation and conciliation but ultimately these efforts failed. On 8.11.2012, the following order was passed by this Court (Indermeet Kaur, J):

“The authorised representative of the respondent is present. It is not in dispute that the principal figure which is owned by the respondent to the petitioner is Rs. 6 crores; legal notice had been sent by the petitioner for an amount of Rs. 17,05,13,764/-; the balance amount is the interest portion which figure is disputed. To express his bonafide, the respondent shall on the next date bring a sum of Rs. 3 crores by way of demand draft in favour of the petitioner and the payment for the balance sum shall be worked out; payment schedule for the said amount shall also be brought on the affidavit of the Managing Director of the Company. Learned counsel for the respondent states that he will be able to arrange these funds by the sale of his property at Solan; he prays for three months time to make the aforenoted first payment. This enlarged period has been opposed by the learned counsel for the petitioner; however, in view of the difficulty expressed by the respondent, the payment be made on or before 08.02.2013. It is made clear that no further enlargement of time shall be granted. The Managing Director of the respondent Company shall also be present on the next date. In the meanwhile, reply be filed by the respondent with advance copy to the petitioner who may file rejoinder before the next date.

Renotify for 22.02.2013.”

When the matter was taken up again on 22.2.2013, another proposal was submitted on behalf of the Company under which it would transfer three immoveable properties in favour of the petitioners. These properties were at Solan and Yamuna Nagar. This proposal was not acceptable to the petitioners. Thereupon it was agreed in Court on behalf of the Company that a more concrete proposal acceptable to the petitioners would be made. The Court accordingly adjourned the matter to 1.3.2013 but stayed the alienation or creation of any third party interest in the properties at Solan and Yamuna Nagar. When the matter was taken up on 1.3.2013, the stay in respect of the three properties was vacated as there was no possibility of any settlement; however, the Company was restrained from selling, transferring, creating any third party interest etc. in respect of all its immoveable assets. On 22.5.2013, when the matter was taken up again an adjournment was sought on behalf of the Company which was vehemently opposed. The adjournment was, however, allowed subject to payment of costs and an order was passed directing the Company not to transfer or create any charge in respect of its stock-in-trade also.

3. Thereafter, the matter has come up for hearing now before me. It was again pleaded on behalf of the Company that some time may be given so that a concrete propo