# IL & FS FINANCIAL SERVICES LIMITED vs. ADHUNIK MEGHALAYA STEELS PRIVATE LIMITED

> SC judgment dated 2025-07-29. Citation: TCN-2025-SC-00079. A loan agreement was entered into between the appellant and the respondent on 27.02.2015, providing…

- **Court:** SC
- **Order date:** 29 Jul 2025
- **Citation:** TCN-2025-SC-00079
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/il-fs-financial-services-limited-vs-adhunik-meghalaya-steels-private-limited-hjggubgx

## Summary

### Background

A loan agreement was entered into between the appellant and the respondent on 27.02.2015, providing a term loan facility of Rs. 30 crores. The loan was secured by a pledge of 8,10,804 shares of Adhunik Metaliks Ltd. The respondent's account was declared a Non-Performing Asset (NPA) on 01.03.2018. The appellant filed a Section 7 IBC application on 15.01.2024.

## Facts

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

## 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 merely renews the debt and does not create a new right of

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**Reasoning:** The Supreme Court reasoned that the Balance Sheet of F.Y. 2019-20, when viewed in the

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**Interpretation:** The Court interpreted Section 18 of the Limitation Act, 1963, in light of

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**Application:** The Court applied the principles to the specific facts, finding that the

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## Parties

- **Judges:** K.V. VISWA…; Manoj M…
- **Appellants:** IL & FS Financial…
- **Respondents:** Adhunik Meghalaya…
- **Other parties:** Ox9UzDgAEJYuUiJITi…
- **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…**: Adhunik Meghalaya Steels Private Limited's account was declared a Non-Performing Asset…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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