TMI Blog2004 (11) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... pany has not paid. The averments in respect of transactions are made in para VI of the petition and the manner in which balance of ₹ 20,025/- is shown is reproduced as below:- Date Particulars Debit Credit Balance 01.0496 Opening Balance 25,125.00 9.4.96 To bill No. 2205 1,260.00 10.4.96 To Bill No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40/- in its balance sheet, it is not necessary to go into this question as I am of the opinion that the petition filed by the petitioner against the respondent is time barred and therefore can not be entertained. From the particulars extracted above, it is clear that the last payment was made on 17th April, 1996. However, the present petition was filed on 26th November, 1999. It is admittedly beyo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time when the acknowledgment of liability is made. However, I am not inclined to agree with the submission of learned counsel for the petitioner that later auditor's report dated 27th November, 1996 constitutes any such `acknowledgment' as provided under Section 18 of the Limitation Act. The Supreme Court in the case of Valliamma Champaka Pillai v. Sivathanu Pillai and Ors. held that : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for this reason that statement of affairs reflected in the final accounts is for the aforesaid period and the balance sheet is as on 31st March, 1996. Merely because the report of the auditor is dated 27th March, 1996, it would not amount to acknowledgment by the auditors of the debt existing even on 27.11.1996 as well. This position would become obvious by giving an illustration. If the position ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This is made clear in the auditor's report itself. In para d (i) it is stated that ''in the case of balance sheet, of the state of affairs of the company, as at 31st March, 1996''. Therefore, the auditor's report is not the acknowledgment of the debt. It is the Balance Sheet only, which can be relied for this purpose and that is of 31st March, 1996. The claim is, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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