Vidyasagar Prasad Vs UCO Bank & Anr. (Supreme Court of India)
Whether unequivocal acknowledgement of debt by the Corporate Debtor in the entries of the balance sheets i.e. specific name of creditor in the balance sheet is required or not for the purpose of determination of limitation in terms of Section 18 of Limitation Act ?
Hon’ble Supreme Court of India recently in the case of Vidyasagar Prasad V/s UCO Bank & Anr. (Civil Appeal No. 1031 of 2022) dealt with following important question;
Whether unequivocal acknowledgement of debt by the Corporate Debtor in the entries of the balance sheets i.e. specific name of creditor in the balance sheet is required or not for the purpose of determination of limitation in terms of Section 18 of Limitation Act ?
In aforementioned appeal, submission raised on behalf of Applicant i.e. Vidyasagar Prasad that there is no unequivocal, unambiguous and specific acknowledgement of debt owed to UCO Bank in the balance sheet entries of Corporate Debtor for the years 2017 and 2019. In the absence of clear demarcation as to what the Corporate Debtor owes to the UCO Bank, the said entries cannot be relied on for the purpose of extending the period of limitation in terms of Section 18 of the Limitation Act. Learned Counsel for the Applicant further argues that even if said entry is taken to be an acknowledgment of debt, the same cannot aid UCO Bank case since it fails to mention the name of financial creditor.
