In Brief
The Supreme Court upheld the admission of an application to initiate corporate insolvency proceedings filed by a bank beyond the normal three-year limitation period. The Court held that entries in the corporate debtor's balance sheet, even without naming the specific creditor, can constitute valid acknowledgment of debt under the Limitation Act when examined case-by-case for equivocality. Additionally, a One-Time Settlement proposal letter by the debtor constituted unequivocal acknowledgment of liability. These acknowledgments restarted the limitation clock, allowing the bank's petition filed 4+ years after default to be treated as timely, thereby validating the initiation of insolvency proceedings.
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