Entries In Balance Sheet Do Not Amount To Acknowledgment Of Debt Under Sec 18 Limitation Act : NCLAT Declines Reference Against ‘V Padmakumar’ Decision

A five-member Bench of the National Company Law Appellate Tribunal turned down a reference made by a three-member Bench, seeking re-consideration of the decision in V. Padamakumar Vs. Stressed Assets Stabilization Fund (SASF) & Anr where it was held that entries in books of accounts will not amount to acknowledgment of debt under Section 18 of the Limitation Act, 1963. The five member-Bench has held that the reference is “incompetent” and it was “inappropriate” on the part of the Referral Bench to doubt the correctness of the five Member Bench Judgment, which admittedly has not been appealed against and occupies the field till date.