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2019 (9) TMI 1144 - AT - Insolvency and BankruptcyAdmissibility of petition - Initiation of CIRP - Corporate Debtor unable to repay the amount - Non Performing Asset - whether the application under Section 7 of the I&B Code was barred by limitation and, if not, whether the claim of the Banks was barred by limitation to hold that there is no debt payable in the eyes of law? - HELD THAT:- The right to apply under Section 7 of the I&B Code, accrued to the Bank only since 1st December, 2016, i.e., when I&B Code came into force. From the aforesaid provision, it is found that the application under Section 7 is not barred by limitation. Apart from the fact that the Bank had taken action under Section 13(4) of the SARAFAESI Act and the matter is pending before the DRT since 2015-16, there being 12 years of limitation prescribed for enforcement of payment of money secured by a mortgage, we hold that the claim of the none of the Consortium Banks are barred by limitation and, therefore, the ‘Corporate Debtor’ cannot claim that the debt is not payable in the eyes of law. In absence of any specific order of taking over the Management in terms of Section 13(4)(b) of the SARAFAESI Act, which includes the right to transfer by way of lease, assignment or sale for realizing of the secured asset, we hold that the Management of the ‘Corporate Debtor’ continued with the Promoter. Therefore, if there is any default on the part of the ‘Corporate Debtor’ to pay the debt amount, the Appellant cannot pass the blame on the Bank. Appeal dismissed.
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