period of limitation for the discharge of the liability as debt. If the amount borrowed is shown in the balance sheet, it may amount to acknowledgement and the creditor might have a fresh period of limitation from the date on which the acknowledgement was made. The Calcutta High Court has in Bengal Silk Mills Co. Vs. Ismail Golam Hossain Ariff AIR 1962 Cal 115 held that if the balance sheet contains an admission of liability; the agent of the company who makes and signs it intends to make those admissions. The admissions do not seem to be acknowledgements of liability merely on the ground that they were made in the discharge of statutory duty. Under section 19 of the Limitation Act an acknowledgement of a debt need not be made to the creditor nor need it to amount to a promise to pay the debt. The balance sheet in the instant case is dated 31st of March 1998 and therefore, by virtue of the acknowledgement of debt in the balance sheet, the time would begin to run from there and the O.A. need to be filed only within a period of 12 years from thereon. The O.A. is filed on 24/07/2009 and is, therefore, within the period of limitation. The Ld. Presiding Officer has therefore committed an error by dismissing the O.A. on the ground of limitation. The Appellant has proved its claim otherwise which is not challenged by the Respondents either before the DRT or before this Tribunal. Hence, the impugned order is set aside.
