Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 965 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - Application rejected on the ground of time limitation - HELD THAT:-Having regard to the facts and circumstances of the case on hand and that the Section 7 Application has been dismissed solely on the ground of Limitation, the subject matter needs to be adjudicated on the touchstone of the principles laid down by the Hon’ble Supreme Court in ‘Asset Reconstruction Company (India) Limited’ Vs. ‘Bishal Jaiswal & Anr.’ AIR [2021 (4) TMI 753 - SUPREME COURT] and in ‘Dena Bank (Now Bank of Baroda)’ Vs. ‘C. Shivkumar Reddy & Anr.’ [2021 (8) TMI 315 - SUPREME COURT], in which the Hon’ble Supreme Court has discussed in detail, the applicability of Sections 18 and 19 of the Limitation Act, 1963. In the instant case, the loan was sanctioned on 11/09/2006; was declared as NPA on 05.04.2008; attempts were made to restructure the debt; Notice under Section 13(2) of SARFAESI Act, 2002 demanding an outstanding amount of ₹ 7,64,52,372.57/- was issued on 28/10/2010, in response to which, the Learned Counsel for the Respondent offered ₹ 740 Lakhs/- for settlement of the loan amount - The material on record evidences that O.A. No. 461 of 2015 filed by the Appellant against the Respondent Company and Guarantors was allowed vide Order dated 02/07/2019, directing the Respondent Company to pay a sum of ₹ 14,68,17,342.58/- together with penal interest. It is not in dispute that the Respondent Company failed to make the payments in compliance of the Order dated 02/07/2019. It is seen from the record that the Section 7 Application was preferred by the Appellant on 18/11/2019. The Appellant Bank was thus entitled to initiate proceedings under Section 7 within three years from the date of issuance of the Recovery Certificate and the ratio of Hon’ble Apex Court in ‘Dena Bank (Now Bank of Baroda)’ [2021 (8) TMI 315 - SUPREME COURT] is squarely applicable to the facts of this case, as Recovery Certificate was issued on 02.07.2019 and the Application was filed on 18/11/2019 well within three years from the date of cause of action. The Application is well within the Limitation - the Adjudicating Authority is directed to proceed in accordance with law and decide the ‘Admission’ under the provisions of the Code, as expeditiously as practicable but not later than 6 weeks from 10/03/2022, on which date, both parties are directed to appear before the Adjudicating Authority - appeal allowed - decided in favor of appellant.
|