Entry in Balance Sheet Acknowledges Debt: Supreme Court Allows IL&FS Plea

The Supreme Court has allowed an IL&FS plea, ruling that an entry in a balance sheet "acknowledges debt," thereby extending the limitation period for initiating insolvency proceedings. This landmark decision clarifies that the inclusion of a debt in a company's balance sheet, even without explicitly naming the creditor, is a valid acknowledgment of debt under the Limitation Act. The ruling provides significant relief to creditors and facilitates the timely initiation of insolvency proceedings, as balance sheets can now be used as definitive proof of debt.