Lawstreet Journal

Entries in the balance sheet of the corporate debtor sufficient acknowledgement for the purpose of Section 18 of the Limitation Act: SC [READ JUDGMENT]

Lawstreet Journal 16 Apr 2021 8:24pm

Image courtesy: Lawstreet Journal Judiciary Entries in the balance sheet of the corporate debtor sufficient acknowledgement for the purpose of Section 18 of the Limitation Act: SC [READ JUDGMENT]

The Supreme Court in its judgement in Asset Reconstruction Company (India) Limited v. Bishal Jaiswal & Anr. (CIVIL APPEAL NO.323 OF 2021) clarified the question of law and held that entries in the balance sheet can be taken as an acknowledgement of outstanding debt for the purpose of Section 18 of the Limitation Act, 1963. The judgement came from a bench comprising of Justice Rohinton Nariman, BR Gavai and Hrishikesh Roy.

Section 18 of the Limitation Act, 1963 extends the period of limitation in the case of any property or right when the party against whom the action is to be taken acknowledges in writing an outstanding liability within the prescribed limitation period.

The case before the apex court was concerning a loan taken by Corporate Power Ltd. back in 2009 for setting up a power plant in Jharkhand. The loan was declared a Non-Performing Asset by the lenders, including State Bank of India, and reconstruction proceedings were initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI) by engaging the appellant, Asset Reconstruction Company (India) Limited. On 20.06.2015, the appellant issued a notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 on behalf of itself and other consortium lenders to the corporate debtor. On 01.06.2016, the appellant took actual physical possession of the project assets of the corporate debtor under the SARFAESI Act. On 26.12.2018, the appellant filed an application under Section 7 of the… Continue Reading...


Tagged: Supreme Court of India  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
Edward Dillinger   4 May 2021 3:06am
Am short of words for the amazing profit you helped me earn in just a week with binary options strategy am so sorry I doubted at the beginning, I invested $200 and earn $2,500 in just one week, and kept on investing more, today I am financially successful, you can contact him via email: tdameritrade077@gmail.com Via whatsapp: (+12166263236) I advice you shouldn't hesitate. He's great.
Reply
Featured Members view all

New Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.