An acknowledgement in the balance sheet of the company satisfies the requirements of section 18 of the Limitation Act, 1963, leading to a fresh period of limitation commencing from each such acknowledgement – Syndicate Bank Vs. Bothra Metals and Alloys Limited – NCLT Mumbai
NCLT held that this is a matter where the question of limitation will have to be considered, since the date of default is stated to be 02.09.2015 and the date of declaration as NPA is 03.12.2015. Upon perusal of the documents on record, it is seen that there is acknowledgment of debt in the balance sheet of the corporate debtor all along. It is well-settled through various judgments of the Hon’ble Supreme Court now that an acknowledgement in the balance sheet of the company satisfies the requirements of section 18 of the Limitation Act, 1963, leading to a fresh period of limitation commencing from each such acknowledgement. Further, the reply also makes it clear that there is a debt due and payable to the Financial Creditor, which remains unsatisfied. Therefore, the aspect of limitation raised as one of the defences by the Corporate Debtor does not hold water. The petition is admitted.
