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PAMIDIGHANTAM SRI NARASIMHA, SANDEEP MEHTA
Vidyasagar Prasad – Appellant
Versus
UCO Bank – Respondent
JUDGMENT :
PAMIDIGHANTAM SRI NARASIMHA, J.
1. By the present appeal, the suspended director of the Corporate Debtor assails the order of the NCLAT1 [National Company Law Appellate Tribunal in Company Appeal (AT) (Insolvency) No. 238 of 2020, dated 04.10.2021] affirming the order of the Adjudicating Authority2 [Adjudicating Authority/National Company Law Tribunal, Kolkata Bench, Kolkata order dated 13.12.2019 in CP No. 254/KB/2019] admitting the application under Section 7 of IBC3 [Insolvency and Bankruptcy Code, 2016] for initiating CIRP4 [Corporate Insolvency Resolution Process] proceedings against the Corporate Debtor.
2. The undisputed facts before us are that the Corporate Debtor (respondent No. 2 herein), now represented by its Insolvency Resolution Professional (IRP), availed loan and credit facilities from UCO Bank (respondent No. 1 herein) and other consortium of banks under agreements dated 21.06.2010, 30.08.2012, 19.07.2012 and 31.12.2012. The said loan and other credit facilities were availed for funding of Corporate Debtor’s Thermal Power Plant.
2.1 Having defaulted on repayment of principal as well as interest levied thereupon, Corporate Debtor’s account was declared as No
Acknowledgment of debt in balance sheets and OTS proposals can extend the limitation period for initiating CIRP under the IBC.
The provisions of Section 18 of the Limitation Act are applicable to proceedings under the Insolvency and Bankruptcy Code, and an acknowledgement in a balance sheet without a qualification can extend....
(1) In computing period of limitation for initiation of CIRP proceedings, time spent in pursuing remedy under SARFAESI Act or any other recovery law cannot be excluded.(2) IBC is essentially a statu....
(1) Initiation of Corporate Insolvency Resolution Process (CIRP) – Period of limitation for making application under Section 7 or 9 of IBC is three years from the date of accrual of right to sue, tha....
Acknowledgment of debt through balance sheets and restructuring efforts extends limitation under Section 18 of the Limitation Act; thus, a Section 7 application under IBC remains valid even if initia....
Balance sheet entries acknowledging corporate guarantee liability, despite 'no validity' note, constitute Section 18 acknowledgment extending limitation for Section 7, combined with COVID extension; ....
(1) IBC is not just another statute for recovery of debts – Nor is it a statute which merely prescribes modalities of liquidation of a Corporate body, unable to pay its debts – It is essentially a st....
The main legal point established in the judgment is the interpretation of the limitation period for filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, and the applicab....
Initiation of Corporate Insolvency Resolution Process - Balance sheet acknowledging debt is also a document relevant for calculating limitation.
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