A client is having approx 112 cr of Debtors as on 31.03.2026 which includes approx 33 crs of subjudice debtors. 32 Crs were realised due to implementation of one law and the same was challenged in the courts. Hon'ble courts has struck down the law and directed not recover single penny now onwards in the name of that law.
Now my question is since Hon'ble court has directed to stop collection from the consumer and specifically noted in its order that the act under which collection from consumer were made is beyond the scope of state authority but didn't comment on treatment of already collected amount and not remitted to the state authority. It is highly likely that refund of the same shall also be ordered as whole law under which collection were melade is struck down by the Hon'ble court. In this case what would be the presentation of Debtor in the financial statement as on 31.03.2026 under Ind As 32. Shall it be shown as Debtor net of Prospective CN to be issued in 26-27 or it will be shown as Gross amount as earlier?
CAclubindia
