The court determined that a debt's enforceability under the Limitation Act can only be revived through valid acknowledgments made within the limitation period, which was not established in this case.

ORDER

Per : Bidisha Banerjee, Member (Judicial)

1. This Court convened through hybrid mode.

2. We have heard learned Counsels at length.

3. This Company Petition has been filed by UCO Bank/Financial Creditor under section 7(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) read with rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 , against the Corporate Debtor, for an amount of default of Rs. 8,46,46,65,395/-. The date of default mentioned therein is 12.09.2023/21.09.2023.

4. Submissions on behalf of the Financial Creditor:

i. The CD was incorporated on the 18th Day of June, 1984, as a public company limited by shares under the provisions of the Companies Act, 1956, under the name and style of “Furmanite Nicco Investment Limited.” Name of the Corporate Debtor was changed to its present name, with principal business set out in the MoA that of an investment company and to invest in and acquire and hold and otherwise deal in shares, stocks and debentures. in C.P (IB) 129/KB/2025

ii. CD was sanctioned/granted inter-alia the working capital facilities both fund based and non-fund based for meeting the part of the working capital needs of the Borrower in addition to/in replacement of the existing facilities and replacement of certain other facilities on contractual terms in the proportion as mentioned in the Working Capital Consortium Agreement dated 29^th June, 2001, having total limits of Rs. 30 crores by the applicant herein over and above the limits provided by other consortium members.

iii. Soon thereafter, the business of the CD saw an overall decline especially in the year 2003-04 and 2004-05. And as such the CD proposed a Corporate Debt Restructuring (CDR) to the CDR cell but the same was not accepted.

iv. In the meantime, the RBI on July 26, 2004, issued circular bearing no. DNBS RO.KOL.NO.R- 100/05.01654/2004-05, and imposed prohibition under section 45MB(1) & (2) of the RBI Act, 1934 , on the CD from accepting and/or renewal of deposits and also from alienation of assets by way of sale, transfer, creation of charge/mortgage or deal in any manner with its property and assets without written permission of RBI.

v. The FC herein along with other consortium members filed an application under section 19 of Recovery of Debts Due to Banks and Financial Instruments Act, in C.P (IB) 129/KB/2025 1993, before the Ld. DRT-I, Kolkata and the same was numbered as O.A. 118 of 2005 inter alia praying for recovery of sum of Rs. 119.23 Crore.

vi. Thereafter, the CD made various OTS proposals over the years, particularly between 2013 to 2024, acknowledging the debt as following :

Therefore, the last date of acknowledging the debt by the CD is 09.12.2024 and the petition was filed on 13.03.2025, which is well within limitation. in C.P (IB) 129/KB/2025

5. Submissions on behalf of the Corporate Debtor :

(i) Section 7 petition filed against a financial service provider –barred under the law :

i. The Corporate Debtor was initially incorporated in the name and style of 'Furmanite Nicco Investment Limited" in the year 1984.

j. In the year 1989, UCO Bank, the Petitioner herein decided to set up a Non-Banking Financial Company (NBFC) with Furmanite Nicco Investment Limited and it was decided that UCO Bank will also have 30% shareholding in Furmanite Nicco Investment Limited.

k. Accordingly, in the minutes of the meeting of the Board of Directors of the CD (then known as "Furmanite Nicco Investment Limited") held on 13.05.1989 it was agreed and resolved to issue and allot 4,50,000 fully Paid up Equity Shares in the CD to UCO Bank and in this connection UCO Bank vide its letter dated 12.05.1989 deposited the purchase con