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1 - 10 of 16 (0.28 seconds)Asset Reconstruction Company (India) ... vs Bishal Jaiswal on 15 April, 2021
8. We may notice that in "Asset Reconstruction Company (India)
Limited" (supra) in paragraph 35, as extracted above, the Hon'ble Supreme
Court has clearly laid down that whether acknowledgment in balance sheet
is acknowledgment within the meaning of Section 18 depends on the facts of
each case and as to whether an entry made in a balance sheet qua any
particular creditor is unequivocal or has been entered into with caveats, which
then has to be examined on a case by case basis. The Adjudicating Authority
having not examined the balance sheet for Financial Year 2016-17 ending on
31.03.2017. In the interest of justice, the Adjudicating Authority has to
examine the balance sheet to find out as to whether it contain
acknowledgment within the meaning of Section 18 of the Limitation Act or
not.
Section 5 in The Limitation Act, 1963 [Entire Act]
The Companies Act, 1956
Rishi Pal Gupta vs S.J. Knitting And Finishing Mills Pvt. ... on 18 May, 1998
In Rishi Pal Gupta v. S.J. Knitting & Finishing Mills
Pvt. Ltd. 73 (1998) DLT 593, the same view was
taken.
Ambica Mills Ltd., Ahmedabad vs Commissioner Of Income-Tax Gujarat, ... on 30 August, 1963
In Ambika Mills Ltd. Ahmedabad v. CIT
Gujarat (1964) 54 ITR 167, it was further held that a
debt shown in a balance sheet of a company amounts
to an acknowledgement for the purpose of Section 19
of the Limitation Act and in order to be so, the balance
sheet in which such acknowledgement is made need
not be addressed to the creditors. In light of these
authorities, it must be held that in the present case,
the disclosure by the assessee company in its balance
sheet as on 31st March, 2002 of the accounts of the
Company Appeal (AT) (Ins.) No. 388 of 2021
7
sundry creditors' amounts to an acknowledgement of
the debts in their favour for the purposes of Section 18
of the Limitation Act. The assessee's liability to the
creditors, thus, subsisted and did not cease nor was
it remitted by the creditors. The liability was
enforceable in a court of law."
Dena Bank (Now Bank Of Baroda) vs C. Shivakumar Reddy on 4 August, 2021
In another recent judgment of the Hon'ble Supreme Court in "Dena
Bank vs. C. Shivakumar Reddy and Ors.- Civil Appeal No. 1650 of 2020",
after referring to the judgment of "Asset Reconstruction Company (India)
Limited" (supra), the Hon'ble Supreme Court again reiterated that Section 18
of the Limitation Act, 1963 is fully applicable to proceedings under 'I&B Code'
and entries in books of accounts and/ or balance sheets of a Corporate Debtor
would amount to an acknowledgment under Section 18 of the Limitation Act.
In paragraph 118, following has been laid down:-
Bengal Silk Mills Co. vs Ismail Golam Hossain Ariff on 17 April, 1961
In Asset
Reconstruction Company (India) Limited v. Bishal
Jaiswall and Anr. (supra) authored by Nariman, J.
this Court quoted with approval the judgments, inter
alia, of Bengal Silk Mills Co. v. Ismail Golam
Hossain Ariff ,18 ["Bengal Silk Mills"] and in Re
Pandem Tea Co.19 Ltd., the judgment of the Delhi
High Court in South Asia Industries (P) Ltd. v.
General Krishna Shamsher Jung Bahadur Rana20
and the judgment of Karnataka High Court in Hegde
Golay Ltd. v. State Bank of India 21 and held that
an acknowledgement of liability that is made in a
Company Appeal (AT) (Ins.) No. 388 of 2021
8
balance sheet can amount to an acknowledgement
of debt."
Hegde And Golay Limited vs State Bank Of India on 19 November, 1985
In Asset
Reconstruction Company (India) Limited v. Bishal
Jaiswall and Anr. (supra) authored by Nariman, J.
this Court quoted with approval the judgments, inter
alia, of Bengal Silk Mills Co. v. Ismail Golam
Hossain Ariff ,18 ["Bengal Silk Mills"] and in Re
Pandem Tea Co.19 Ltd., the judgment of the Delhi
High Court in South Asia Industries (P) Ltd. v.
General Krishna Shamsher Jung Bahadur Rana20
and the judgment of Karnataka High Court in Hegde
Golay Ltd. v. State Bank of India 21 and held that
an acknowledgement of liability that is made in a
Company Appeal (AT) (Ins.) No. 388 of 2021
8
balance sheet can amount to an acknowledgement
of debt."