Company Appeal (AT) (Insolvency) No. 1182 of 2019 Page 1 of 18

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI

Company Appeal (AT) (Insolvency) No. 1182 of 2019

[Arising out of Impugned Order dated 22^nd October 2019 passed by the

Hon‟ble Adjudicating Authority, National Company Law Tribunal,

Allahabad Bench in C.P. (IB) No. 349/ALD/2018]

IN THE MATTER OF:

Manesh Agarwal

S/o Sh. Roop Kishore Agarwal

Aged about 47 years

R/o A-200, Kamla Nagar

Agra, Uttar Pradesh

…Appellant

Versus

1. Bank of India

Through its Authorized Officer

Neeraj Kumar Sharma

Branch Manager

Office at:

Agra Mid Corporate Branch

49-50, Sulabh Puram

Near Kargil Petrol Pump

Sikandara-Bodla Road, Agra – 282007

…Respondent No.1

2. M/s B.B. Foods Private Limited

Through the Interim Resolution Professional

Pramod Kumar

R/o H.No. 16, Dashrath Kunj „B‟

West Arjun Nagar – 282001 (U.P.)

Email: pksharmapcs@gmail.com

…Respondent No.2

Present:

For Appellant

: Mr Nikhil Nayyar, Sr. Advocate with Ms Vanshaja

Shukla, Ms Anuja Pethia and Mr Noor Shergill,

Advocates.

For Respondent

: Mr V. Seshagiri and Mr Siddharth Sachar, Advocates.

J U D G M E N T

[Per; V. P. Singh, Member (T)]

This Appeal emanates from the order passed by the Adjudicating

Authority/National Company Law Tribunal, Allahabad Bench in C.P. (IB) No.

Company Appeal (AT) (Insolvency) No. 1182 of 2019 Page 2 of 18

349/ALD/2018, whereby the Adjudicating Authority has admitted the

application filed by the Respondent Bank under Section 7 of the Insolvency

and Bankruptcy Code, 2016 (for short „I&B Code‟). Parties are represented

by their original status in the company petition for the sake of convenience.

2.

Brief facts of the case are as follows:

The Applicant/Respondent herein filed an application under Section 7

of the Insolvency and Bankruptcy Code, 2016 for initiation of Corporate

Insolvency Resolution Process against the corporate Debtor – Company M/s

B.B. Food Private Limited.

3.

The Petitioner submits that on the request of the Corporate Debtor –

Financial Creditor - Bank of India has granted various credit limits of an

aggregate amount of Rs. 28,00,00,000/- (Rupees twenty-eight crores only).

The Corporate Debtor defaulted in repayment of dues of the applicant bank.

The Financial Creditor classified the account of the Corporate Debtor as NPA

on 29^th January 2013 under the guidelines issued by RBI, and the total

amount claimed to be in default is Rs. 40,33,04,620/- (Rupees forty crore

thirty-three lacs four thousand six hundred twenty only) but after that, the

Corporate Debtor had executed the document dated 13^th April 2015 and

thereby acknowledge the debt.

4.

In reply to the petition, the Corporate Debtor submitted that the

petition filed by the Financial Creditor is not maintainable and is barred by

Limitation. It is stated that on the advice of the Financial Creditor, the

Corporate Debtor had already submitted „One Time Settlement‟ proposal

Company Appeal (AT) (Insolvency) No. 1182 of 2019 Page 3 of 18

dated 05^th October 2018 for an amount of Rs. 1,60,00,000/- and deposited

Rs.1,60,00,000/- vide demand draft and the same has been duly realised,

and it had been informed to the Corporate Debtor that his proposal is under

consideration. It is further submitted by the Corporate Debtor that the

present application under Section 7 of the I&B Code is barred by limitation

under Section 238A of I&B Code. Article 137 of Limitation Act, which

prescribes the limitation period of 3 years for the application and is to be

computed from the date of occurrence of the default, so the period of

limitation ended on 28^th January 2016.

5.

It is further contended by the Corporate Debtor that the Fina