IBC | Naming Creditor In Balance Sheet Not Mandatory, Acknowledgment Extends Limitation: Supreme Court Allows IL&FS Plea

The Supreme Court has allowed an IL&FS plea, ruling that "naming a creditor in a balance sheet is not mandatory" for it to constitute an acknowledgment of debt that extends the limitation period. This clarifies that as long as the balance sheet entries clearly reflect an outstanding liability and indicate a debtor-creditor relationship, they are sufficient to extend the limitation period for initiating insolvency proceedings under the IBC. This decision provides significant relief to creditors and reinforces that technicalities should not hinder the recognition of genuine debts in insolvency cases.