# In the matter of IL & FS Financial Services Limited vs. Adhunik Dhunik Meghalaya Steels Private Limited

> SC judgment dated 2025-07-30. Citation: TCN-2025-SC-00085. The case concerns the dismissal of a Section 7 application under the Insolvency and Bankruptcy Code…

- **Court:** SC
- **Order date:** 30 Jul 2025
- **Citation:** TCN-2025-SC-00085
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/il-fs-financial-services-limited-vs-adhunik-dhunik-meghalaya-steels-private-limi-368fc643

## Summary

### Background

The case concerns the dismissal of a Section 7 application under the Insolvency and Bankruptcy Code (IBC) by the National Company Law Appellate Tribunal (NCLAT) and the National Company Law Tribunal (NCLT) on the grounds of limitation.

## Facts

A Loan Agreement was entered into between IL & FS Financial Services Limited (appellant) and Adhunik Meghalaya Steels Private Limited (respondent) on 27.02.2015 for a term loan facility of Rs. 30 crores.

The loan was secured by a pledge of 8,10,804 shares of Adhunik Metaliks Ltd. in favor of the appellant.

The account of the respondent was declared as a Non-Performing Asset (NPA) on 01.03.2018.

The appellant filed a Section 7 IBC application on 15.01.2024, claiming a default amount of Rs. 55,45,97,395/- with the date of default as 01.03.2018.

The appellant argued that the Balance Sheet of F.Y. 2019-20, signed on 12.08.2020, constituted an acknowledgment of debt, and the application was filed within the extended limitation period due to orders passed by the Supreme Court.

…

## Issues and analysis

### Issue 1: Whether the entries in the Balance Sheet of F.Y. 2019-20 constitute a valid acknowledgment of debt …

**Ratio:** An acknowledgment of debt must indicate the existence of a jural relationship between the

…

**Reasoning:** The Court relied on precedents such as Khan Bahadur Shapoor Fredoom Mazda v. Durga Prasad

…

**Interpretation:** The Court interpreted Section 18 of the Limitation Act, 1963, to mean that an

…

**Application:** The Court found that the Balance Sheet of F.Y. 2019-20, viewed in the

…

## Parties

- **Judges:** K.V. VISWA…; Manoj M…
- **Appellants:** IL & FS Financial…
- **Respondents:** Adhunik Meghalaya…
- **Other parties:** Over Tu…
- **Advocates:** Ritin…; Ramji Srin…

## Timeline

- **2015-02-27 — Loan Agre…**: A Loan Agreement was entered into between IL & FS Financial Services Limited and Adhunik…
- **2018-03-01 — Account Decla…**: The account of Adhunik Meghalaya Steels Private Limited was declared as a Non-Performing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/il-fs-financial-services-limited-vs-adhunik-dhunik-meghalaya-steels-private-limi-368fc643