The third issue pertains to legal character of the admission of a claim by the IRP/RP and whether such admission can be construed as admission of liability so as to extend the period of limitation Under Section 18 of the 1963 Act. At the outset, it must be noted that scope and ambit of Section 18 of the 1963 Act are well-settled. For a writing to constitute a valid acknowledgment, it must be made by the party against whom the right is claimed, or by a person duly authorized on its behalf; it must be made before the expiration of the prescribed period of limitation; and, most importantly, it must evince a conscious and unequivocal intention to admit a subsisting jural relationship and an existing liability. A mere reference to a past transaction or a bald recital of a debt, without an intention to admit liability, would not suffice. The said principle has been authoritatively enunciated by this Court6. The provisions of the Code and the Regulations were considered by this Court7 and it has been held that RP has no adjudicatory powers and his role involves collation of claims. RP performs its administrative duties Under Section 18 of the Code. The admission of a claim by RP is merely an administrative/clerical task performed as part of its statutory duties Under Section 18 of the Code8 and, therefore, admission of claim by RP only means induction/entry of a claim. An admission of a claim by RP is akin to mere recital/reference of debt, which does not amount to an acknowledgment Under Section 18 of the 1963 Act9. Therefore, IRP's admission of secured financial creditors debt in first CIRP was not an acknowledgement Under Section 18 of 1963 Act. Accordingly, third issue is answered. {Para 16}
IN THE SUPREME COURT OF INDIA
Civil Appeal Nos. 13158-13159 of 2025
Decided On: 29.04.2026
Shankar Khandelwal Vs. Omkara Asset Reconstruction Pvt. Ltd. and Ors.
Hon'ble Judges/Coram:
Pamidighantam Sri Narasimha and Alok Aradhe, JJ.
Author: Alok Aradhe, J.