https://www.taxtmi.com/caselaws?id=426764 Balance-sheet entries can amount to acknowledgment of debt for limitation purposes when, read with auditor's notes and management comments, they show an unequivocal continuing liability. The principle is applied case by case: a balance-sheet entry is not automatically an acknowledgment, but caveats, auditor observations, or a counterclaim do not necessarily negate liability if the financial statements still clearly disclose the borrowing. Where the statements are prepared in the ordinary course and reflect the debt over multiple years, Section 18 of the Limitation Act may extend limitation and preserve a Section 7 insolvency application. en-us Tue, 23 Aug 2022 00:00:00 +0530 Thu, 25 Aug 2022 08:13:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=426764 Balance-sheet entries can amount to acknowledgment of debt for limitation purposes when, read with auditor's notes and management comments, they show an unequivocal continuing liability. The principle is applied case by case: a balance-sheet entry is not automatically an acknowledgment, but caveats, auditor observations, or a counterclaim do not necessarily negate liability if the financial statements still clearly disclose the borrowing. Where the statements are prepared in the ordinary course and reflect the debt over multiple years, Section 18 of the Limitation Act may extend limitation and preserve a Section 7 insolvency application. Case-Laws Insolvency and Bankruptcy Tue, 23 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=426764