3 members bench referred V. Padmakumar, 5 members bench’s judgment, on Company’s Balance Sheet amounts to an acknowledgement of debt under Section 18 of the Limitation Act, 1963 to Hon’ble Acting Chairperson for reconsideration – Bishal Jaiswal Vs. Asset Reconstruction Company (India) Ltd – NCLAT New Delhi
Three Members Bench of the Appellate Tribunal (NCLAT) heard the arguments in Company Appeal (AT) (Ins) No. 385 of 2020. During the course of arguments, a Judgment rendered by Five Hon’ble Members of this Appellate Tribunal in the Case of V. Padma Kumar Vs. Stressed Assets Stabilization Fund (SASF) & Anr. [2020] ibclaw.in 255 NCLAT has been cited before the Bench. After hearing the arguments of Learned Counsel for the parties. The bench with the great respect to the Hon’ble Members of the Judgment thought it proper to refer the V. Padmakumar’s case for reconsideration. The issue is of great importance which is as “Hon’ble Supreme Court and various Hon’ble High Courts have consistently held that an entry made in the Company’s Balance Sheet amounts to an acknowledgement of debt under Section 18 of the Limitation Act, 1963, in view of the settled law, V. Padmakumar’s Case requires reconsideration.” The Registrar is directed to place the attached reference alongwith V. Padmakumar’s Case (Supra) before the Hon’ble Acting Chairperson for constituting appropriate Bench. Reasons for reconsideration of V. Padmakumar’s Judgment: