Section 18 Archives

Creditor’s name not essential in balance sheet for acknowledgment of debt to extend limitation period; Supreme sets aside NCLAT Order; Allows IFIN’s plea

The judgment reaffirmed the principle that entries in a corporate debtor’s balance sheet can constitute an acknowledgment of liability under Section 18 of the Limitation Act, provided they indicate a subsisting jural relationship between the parties, even if the financial creditor is not named explicitly. The Court emphasised that such entries must be interpreted liberally and in context, considering the overall tenor of the balance sheet and the surrounding circumstances.

Case Briefs High Courts

‘Petition filed due to misguided over enthusiasm’; Patna HC dismisses plea by a lawyer challenging Sections 2, 9, 12, 18 of the Constitution (101st Amendment) Act, 2016

The public interest asserted cannot be entertained since dealers registered under earlier VAT regime, now shifted to GST regime, by virtue of Constitution (101st Amendment) Act, 2016 cannot be said to be a marginalized section, who are incapable of agitating their rights before the courts of law.

Case Briefs High Courts

Benefits under MSME Act do not apply retrospectively if registration is obtained after commencement of contract: Delhi HC reiterates

“The purpose of Sections 17 and 18 of the Micro, Small and Medium Enterprises Development Act, 2006, gives the right to a micro, small and medium enterprise to have its disputes adjudicated by approaching the facilitation councils and it cannot be obliterated on account of any other contract to the contrary.”