Larsen & Tubro Ltd. vs Commercial Electric Works And Ors. on 4 February, 1997
"14. The respondent in its balance sheet for the
year ending 31.3.1990 has admitted that the
petitioner is one of the sundry creditors of the
Co. Petition No.301/2015 Page 5 of 10
respondent company and its name is shown in the
list of sundry creditors in the said balance sheet.
The respondent has also admitted its liability in its
reply dated 22.11.1991 whereunder it has
transmitted the said balance sheet to the Registrar
of Companies. The Division Bench of this court
has also in its order dated 29.11.1995 recorded
that there is an admission of liability by the
respondent to the extent of Rs. 6,89,870.76 and
that the said liability was acknowledged by the
respondent in its reply dated 22.11.1991. In view
of the aforesaid acknowledgement of debt in the
balance sheet as also in the reply sent by the
respondent through one of its Directors
constituting acknowledgement in writing within the
meaning of Section 18 of the Limitation Act, the
petition presented by the petitioner on 14.5.1992 to
enforce a liability of the company acknowledged in
the balance sheet for the year ending 31.3.1990 is
indisputably within time. Reference may also be
made to a decision of this court in Larsen &
Toubro Ltd. v. Commercial Electrical Works and
Ors., wherein this court referred to the decision
reported in ILR 33 Calcutta 1033 wherein it was
held that a statement of accounts like balance
sheet would constitute acknowledgement of
liability. The decisions relied upon by the counsel
for the respondent also have taken the same view
with which I respectfully agree."