New Delhi, Aug. 1 -- The Supreme Court today allowed the appeal filed by IL&FS Financial Services Ltd. (IFIN) and overturned the March 25, 2025, judgment of the National Company Law Appellate Tribunal (NCLAT), which had upheld the National Company Law Tribunal's (NCLT) dismissal of IFIN's insolvency plea as time-barred.
The case involved a loan default by Adhunik Meghalaya Steels Pvt. Ltd., and the key issue was whether entries in the company's 2019-20 balance sheet could be treated as an acknowledgment of debt.
IFIN argued that this acknowledgment extended the limitation period under Section 18 of the Limitation Act, 1963, allowing them to initiate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).
The Supreme Court...