Asset Reconstruction Company (India) Limited vs. Bishal Jaiswal- Hon'ble Supreme Court
The judgment of the Hon’ble Supreme Court in the matter of Asset Reconstruction Company (India) Limited vs. Bishal Jaiswal (Judgment dated 15.04.2021 in Civil Appeal No. 323/2021) has revisited the issue of acknowledgement of debt in the balance sheet of the Corporate Debtor from the aspect of extending the limitation period to raise claims. The Hon’ble Supreme Court has fortified the acknowledgement of debt by recognition of debts qua a creditor in the Balance Sheet of a Company. It has come up as a big jolt on the plight of those corporate debtors who were providing the debt structure in the balance sheet while not acknowledging that the amount is actually due and payable. In effect, with this judgment, the plea of corporate debtors is expected to fall flat and a series of IBC proceedings especially initiated by the financial creditors which were being blocked on account of limitation, are going to resurface.