https://www.taxtmi.com/caselaws?id=421216 A Section 7 insolvency application was challenged as time-barred, with the key issue being whether a 2016-17 balance sheet and one-time settlement proposals amounted to acknowledgment of debt under Section 18 of the Limitation Act, 1963. The later settlement proposals were treated as too late to extend limitation on their own, but the signed, adopted and audited balance sheet was accepted as evidence of a subsisting liability because it disclosed outstanding dues to banks. On that basis, the balance sheet constituted a valid acknowledgment within limitation and extended the period for initiating insolvency proceedings. The rejection of the Section 7 application on limitation grounds could not stand, and the matter was remitted for fresh consideration. en-us Mon, 18 Apr 2022 00:00:00 +0530 Wed, 20 Apr 2022 08:31:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421216 A Section 7 insolvency application was challenged as time-barred, with the key issue being whether a 2016-17 balance sheet and one-time settlement proposals amounted to acknowledgment of debt under Section 18 of the Limitation Act, 1963. The later settlement proposals were treated as too late to extend limitation on their own, but the signed, adopted and audited balance sheet was accepted as evidence of a subsisting liability because it disclosed outstanding dues to banks. On that basis, the balance sheet constituted a valid acknowledgment within limitation and extended the period for initiating insolvency proceedings. The rejection of the Section 7 application on limitation grounds could not stand, and the matter was remitted for fresh consideration. Case-Laws Insolvency and Bankruptcy Mon, 18 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421216