Admission in Balance Sheet – Mere Statutory Compliance or Admission of Debt?

Advertisement Advocate Shikhhar Gupta Advocate Ankush Bhardwaj Recently, a three judge bench of National Company Law Appellate Tribunal (NCLAT) in V. Padmakumar vs. Stressed Assets Stabilisation Fund (SAFS) & Anr.[i] considered the issue that ‘whether admission of debt in balance sheet would amount to acknowledgement of debt which would further amount to extension of period of limitation as per Section 18 of the Limitation Act, 1963 (Limitation Act)’. The issue in the said matter before the NCLAT was whether an application under Section 7 of the Insolvency & Bankruptcy Code, 201...