ENTRIES IN BALANCE SHEET DO NOT AMOUNT TO ACKNOWLEDGMENT OF DEBT UNDER SEC 18 LIMITATION ACT

ENTRIES IN BALANCE SHEET DO NOT AMOUNT TO ACKNOWLEDGMENT OF DEBT UNDER SEC 18 LIMITATION ACT

23rd December

A five-member bench of the National Company Law Appellate Tribunal(NCLT)  rejected a reference made by a three-member Bench, seeking reconsideration of the verdict in V. Padamakumar Vs. Stressed Assets Stabilization Fund (SASF) & Anr where it was found that entries in books of accounts will not amount to an acknowledgment of debt under Section 18 of the Limitation Act, 1963. 

The five-membered bench held the reference inappropriate on part of Referral Bench to doubt the accuracy of the five Member Bench Judgment, which admittedly has not been appealed against and occupies the field to date.