New Delhi, May 2 -- The Supreme Court has set aside a ruling of the National Company Law Appellate Tribunal (NCLAT) that treated admission of a creditor's claim by a resolution professional as an acknowledgment of debt for extending limitation under insolvency law.

RP's Role Is Administrative, Not Adjudicatory

A bench comprising Justices Pamidighantam Sri Narasimha and Alok Aradhe held that admission of claims by a resolution professional (RP) is merely an administrative function and does not amount to acknowledgment of liability under Section 18 of the Limitation Act, 1963.

The Court observed that the RP's role is limited to collating and recording claims under the Insolvency and Bankruptcy Code (IBC), 2016, and such actions cannot be...