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TMI BlogInterpreting Limitation and Acknowledgment of Debt under the IBC: A Detailed Legal AnalysisX X X X Extracts X X X X X X X X Extracts X X X X ..... PRINCIPAL BENCH , NEW DELHI Introduction This analysis provides an in-depth examination of an appellate decision involving a dispute under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The appeal contested the decision of the National Company Law Tribunal (NCLT), focusing on intricate legal issues surrounding the application's admissibility, primarily concerning the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicability of the Limitation Act, 1963 , in the context of insolvency proceedings under the IBC, particularly Section 18 , which concerns the acknowledgment of debt and its effect on limitation periods. Recognition of Debt Acknowledgment : Whether entries in balance sheets and director's reports can be construed as acknowledgments of debt under the Limitation Act . Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acknowledgments, referencing the Supreme Court's judgment in the case of Bishal Jaiswal. The tribunal inferred that while mere entries in balance sheets cannot be regarded as unqualified acknowledgments of debt, a comprehensive analysis of financial statements, director s reports, and the conduct of the debtor suggested an implicit acknowledgment. Impact of Disputes on Acknowledgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. Conclusion This decision is a seminal one in the context of the IBC, as it clarifies the interplay between the provisions of the Limitation Act and the acknowledgment of debt in corporate insolvency processes. It underscores the importance of a nuanced understanding of financial statements and director s reports in determining the acknowledgment of debt. Moreover, the ruling emph ..... X X X X Extracts X X X X X X X X Extracts X X X X
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