# In the matter of Asset Reconstruction Company (India) Ltd. Vs. Bishal Jaiswal & Anr. Civil Appeal No. 323 of 2021 with 4 other civil appeals

> SC judgment dated 2021-04-15. Citation: TCN-2021-SC-00050. The case revolves around the applicability of Section 18 of the Limitation Act to proceedings under…

- **Court:** SC
- **Order date:** 15 Apr 2021
- **Citation:** TCN-2021-SC-00050
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/asset-reconstruction-company-india-ltd-vs-bishal-jaiswal-anr-civil-appeal-no-323-5e2832f6

## Summary

### Background

The case revolves around the applicability of Section 18 of the Limitation Act to proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC). Corporate Power Ltd. availed a loan in 2009 for a thermal power project in Jharkhand. The account was declared a non-performing asset by SBI on 2013-07-31. SBI issued a loan-recall notice on 2015-03-27. The debts were assigned to Asset Reconstruction Company (India) Limited. The appellant issued a notice under Section 13(2) of the SARFAESI Act on 2015-06-20 and took physical possession of the project assets on 2016-06-01. An application under Section 7 of the IBC was filed before the NCLT on 2018-12-26. The NCLT admitted the Section 7 application on 2020-02-19, observing that the balance sheets of the corporate

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## Facts

In 2009, Corporate Power Ltd. set up a thermal power project in Jharkhand and availed of loan facilities. The account of the corporate debtor was declared a non-performing asset by SBI on 2013-07-31. On 2015-03-27, SBI issued a loan-recall notice. On 2015-03-31, some of the original lenders assigned the debts to the Asset Reconstruction Company (India) Limited. On 2015-06-20, the appellant issued a notice under Section 13(2) of the SARFAESI Act. On 2016-06-01, the appellant took physical possession of the project assets. On 2018-12-26, the appellant filed an application under Section 7 of the IBC before the NCLT for a default amounting to Rs.5997,80,02,973/-. On 2019-11-08, the appellant filed a supplementary affidavit before the NCLT, mentioning the date of default

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## Issues and analysis

### Issue 1: Whether entries made in the balance sheets of a corporate debtor amount to an acknowledgement of …

**Ratio:** Section 18 of the Limitation Act states that an acknowledgement of present subsisting

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**Reasoning:** The court reasoned that several judgments have indicated that an entry made in the books

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**Interpretation:** The court interpreted Section 18 of the Limitation Act in conjunction with

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**Application:** The court applied the ratio to the specific facts of the case, noting that the

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## Parties

- **Judges:** ROHINTON FALI…; B.R. G…; +1 more
- **Appellants:** Asset Reconstructi…
- **Respondents:** Corporate Power…; Bishal Ja…
- **Other parties:** Over Tu…

## Timeline

- **2009-01-01 — Loan Ava…**: Corporate Power Ltd. availed a loan for a…
- **2013-07-31 — Account Decla…**: The account of the corporate debtor was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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