A ledger confirmation or balance confirmation is a written statement, signed and usually stamped by the buyer, confirming that the balance shown in the supplier's books as on a stated date is correct and payable (or noting differences). It is a written acknowledgement of liability under Section 18 of the Limitation Act, so a fresh three-year limitation period runs from its date, and it is strong evidence in a summary suit, a Facilitation Council reference or a mediation.
How ledger confirmations work in India
The supplier sends a statement of account with a confirmation slip: "We confirm that the balance of ₹___ as on ___ is correct and payable by us." The buyer's authorised person signs and stamps it and returns it, physically or as a scanned PDF by email. Many companies issue confirmations in their own format at year end. If the buyer notes a difference (for example a credit note not reflected), the supplier reconciles and obtains a revised confirmation. The signed document is filed with the invoices. An email from an authorised officer stating "balance confirmed" may also qualify, though a signed and stamped document is preferable.
Why it matters for getting paid
A buyer who has signed a confirmation cannot credibly dispute the supply or the amount later, which is exactly what buyers do when a notice arrives. It also resets the limitation clock, which saves claims that would otherwise expire. For a trader or medium enterprise, the confirmation plus invoices is often enough for a decree in a summary suit. Read acknowledgement of debt and statement of account.
How FundRaksha uses it
FundRaksha's advocates ask for every balance confirmation the client holds and, where none exists, draft the notice to invite one. Clients are advised to institutionalise year-end confirmations. The free consultation includes a check of what confirmations exist and what they do for limitation. Fee: 30% of recovery.
Worked example (hypothetical)
A Coimbatore motor manufacturer supplied ₹11,00,000 of goods between January and June 2023 on 45-day terms; the last due date was 15 August 2023, so limitation on the latest invoice would run to 15 August 2026. On 31 March 2025 the buyer's finance manager signed and stamped a confirmation of ₹11,00,000 payable. Limitation now runs to 31 March 2028 on the whole balance. When the buyer later claims that two invoices were "never received", the signed confirmation, together with the e-way bills, defeats the point, and the Commercial Court grants conditional leave to defend only on deposit of the full ₹11,00,000.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.