Case Law Analysis
|Calcutta High Court
Order XII Rule 6 CPC | Balance Sheet Admission Bars Debt Absorption Defense Despite CIRP : Calcutta HC
The Calcutta High Court ruled that an unconditional liability admitted in a balance sheet constitutes a binding judicial admission under Order XII Rule 6 CPC, which overrides any defense based on debt absorption during a third party’s Corporate Insolvency Resolution Process. This sets a critical precedent for creditors seeking recovery against guarantors or third-party obligors even when the original debtor is under IBC proceedings.