Once the amount is properly reflected in the ledger as outstanding and payable, the Statute of limitation begins on the following date

Last updated: 11 June 2022

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Quick Summary

This Delhi High Court ruling clarifies when the Statute of Limitation begins for debts. The court held that once an amount is accurately recorded in a company's ledger as outstanding and payable, a new limitation period starts from the date of that acknowledgement. This decision was made in a case involving a dispute over seed subsidies and trade discounts between two corporations.

Court :
Delhi High Court

Brief :
It is a well settled fact that once a disputed liability has shown in the financial statement of a company as outstanding, the limitation period will again begin from the date next to the date of such acknowledgement. It means that the date on which books of accounts signed by Board of Directors of the company.

Citation :
FAO(OS) (COMM) 69/2022 & CM APPL. 14275/2022

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1999

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3499

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4999

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Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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