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P. S. NARASIMHA, MANOJ MISRA
B. Prashanth Hegde – Appellant
Versus
State Bank of India – Respondent
| Table of Content |
|---|
| 1. application under section 7 of ibc outlined. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12) |
| 2. court analysis related to default and limitation. (Para 14 , 26 , 27 , 28 , 29 , 30 , 31 , 36 , 42 , 52 , 53 , 54) |
| 3. arguments challenging admissibility and validity of section 7. (Para 16 , 17 , 18 , 19 , 20 , 21 , 24) |
| 4. acknowledgement in balance sheets extends limitation. (Para 34 , 38 , 40 , 46 , 50) |
| 5. final decision; appeal dismissed. (Para 56 , 57) |
JUDGMENT :
MANOJ MISRA, J.
1. This appeal, under Section 62 of the Insolvency and Bankruptcy Code, 20161[IBC], impugns judgment and order of the National Company Law Appellate Tribunal, Principal Bench at New Delhi2[NCLAT], dated 17.12.2021, passed in Company Appeal (AT) (Ins) No. 68 of 2019 and I.A. No. 1078 of 2021.
FACTS
2. A brief narration of facts in a chronological order would be apposite. The first respondent (State Bank of India3[SBI]), claiming itself to be the Financial Creditor4[FC] of M/s. Metal Closure Pvt. Ltd. (i.e., the Corporate Debtor5[CD]), filed an application under Section 7 6[ Section 7 . Initiation of corporate insolvency resolution process by financial creditor. – (1) A financial creditor
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....
(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) 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 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....
Debt acknowledgement in balance sheets and letters by corporate debtor extends limitation for Section 7 application beyond date of default and NPA, even post Covid exclusion; debtor cannot invalidate....
Acknowledgment of debt in balance sheets and OTS proposals can extend the limitation period for initiating CIRP under the IBC.
(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....
(1) Power of attorney holder’ is not competent to file application under Section 7 of IBC on behalf of financial creditor – However, general authorisation given to an officer of financial creditor by....
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....
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