Recently, the Supreme Court of India answered a crucial question of whether an entry made in the balance sheet of a company can be classed as a de-facto acknowledgment of debt as stipulated in Section 18 of the Limitation Act, 1963, thus giving a further extension concerning the timeline of application as assigned under Section 7 of the Insolvency and Bankruptcy Code (IBC) 2016. The example of IL & FS Financial Services Limited versus. Adhunik Meghalaya Steels Private Limited (2025 INSC 911) contains a representative approach to the legal principles of this case and elucidates the use of their own directions on the Supreme Court regarding the extension of limitation of period due to pandemic of COVID-19.
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