National Company Law Appellate Tribunal, New Delhi

Principal Bench

COMPANY APPEAL (AT) (Insolvency) No. 90 of 2020

(Arising out of Order dated 06^th November, 2019 passed by National Company Law

Tribunal, Mumbai Bench, in Company Petition (IB) No.- 3568/NCLT/MB/2019)

IN THE MATTER OF:

Mr. Vijay Sitaram Dandnaik

Dandnaik Complex, Tambir

Vibhag Osmanabad 413 501 MH IN

…..Appellant

Versus

1.

Punjab National Bank

Aurora Towers, 9, Moledina RD,

Camp, Pune, Maharashtra 411001

2.

M/s. Jailaxmi Sugar Products

Pvt. Ltd. through Dharit Kishorbhai Shah

Resolution Profession of

Jailaxmi Sugar Products Pvt. Ltd.

T02, G6, Phase II, Ganga Dham,

Market Yard,

Pune - 411 037

...Respondent No. 1

…Respondent No. 2

Appellant:

Ms. Madhumita Chakraborty, Advocate.

Respondents:

Mr. PBA Srinivasan and Mr. Avinash Mohapatra,

Advocates for R-1.

Mr. Vicky Dang, Advocate for R-2 (RP).

J U D G E M E N T

[Per; Shreesha Merla, Member (T)]

1.

Aggrieved by the Impugned Order dated 06.11.2020, passed by the

Learned Adjudicating Authority (National Company Law Tribunal, Mumbai

Bench, in CP (IB) No. 3568/NCLT/MB/2019, admitting the Section 7

Application filed by Punjab National Bank; the Financial Creditor, Jailxami

Sugar Products (Nitali) Private Limited, the Corporate Debtor preferred this

Appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 (in

short the ‘IBC’). While admitting the Application, the Learned Adjudicating

Authority in the Impugned Order observed as follows:-

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Company Appeal (AT) (Insolvency) No. 90 of 2020

“15. On perusal of the Sanction letters dated

07.05.2010, 28.09.2010 and 17.09.2011, Term Loan

Facility Agreement dated 29.09.2010 and Bank

statement of the Corporate Debtor's account annexed

to the Application and it is established that the

Corporate Debtor has received the debt amount.

16. On perusal of letter dated 11.06.2017 issued by

Corporate Debtor to Applicant seeking restructuring of

the loan and Balance & Security Confirmation Letter

dated 17.06.2017, it is clear that the Corporate

Debtor has admitted to its liability to repay the debt

amount received from the Applicant.

17. On perusal of the bank statement of the Corporate

Debtor along with certificate under section 2A of the

Bankers Books Evidence Act, 1891 it is seen that the

Corporate Debtor has not made any payments to the

Applicant. The date of default being the date of

classification of the Corporate Debtor's account as

NPA i.e. 31.03.2013.

18. The Corporate Debtor initiated proceedings before

Debt Recovery Tribunal, Pune in OA No. 185/2014

and vide order dated 01.11.2016 it was held that the

Corporate Debtor is liable to repay the debt amounts

to the Applicant. The Applicant has issued letter for

restructuring the loan on 11.06.2017 acknowledged

its liability to repay debt amounts on 17.06.2017.

19. The present application is filed by the Applicant

The debt amount of more than Rupees One Lakh and

default

by

the

Corporate

Debtor

has

been

established. The application is filed on proper Form 1

and is complete. The Application has been filed within

the period of limitation.”

2.

Learned Counsel appearing for the Appellant contended that the

Application filed by the Financial Creditor was barred by limitation; that the

Petition was filed six years after the account by the Corporate Debtor was

declared as NPA and was therefore barred by limitation; that a winding up

Order has been passed and an Official Liquidator was appointed by the

Hon’ble High Court of Bombay which was not considered by the

Adjudicating Authority; that the Directors were not served with a copy of the

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Company Appeal (AT) (Insolvency) No. 90 of 2020

Petition; that the Company was classified as NPA on 31.03.2013 and the

Petition was filed in the year 2019 after a lapse of six years and was clearly

barred by limitation; that the Offici