TMI Blog2021 (1) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the contention of the applicant is that although the NPA was declared on 06.08.2012, the Corporate Debtor within the period of three years had acknowledged the debt and restructuring of credit facility was arrived between the Corporate Debtor and the Financial Creditor within the period of three years. The heading of the document is status of plant and repayment of loans and from the plain reading of the averment made in this document, it is noticed that there is no clear cut acknowledgment as it was in the settlement agreement dated 29.04.2014 - when we consider the letter dated 24.03.2017 upon which the applicant has placed reliance, we are of the considered view that this letter would not be treated as acknowledgement of debt und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incorporated under Companies Act, 1956 approached the Financial Creditor, a member of the consortium of banks led by Allahabad Bank, to sanction working capital of ₹ 30 Crore. ii. The Financial Creditor as a member of the consortium of banks sanctioned the credit facility to the Corporate Debtor on 03.08.2007. The credit facility was renewed on 18.04.2009, 16.01.2010, 30.03.2011 and 16.04.2011. iii. The Corporate Debtor signed and executed all necessary documents on every occasion pursuant to the credit facility and bound by the terms and conditions of the loaning and security documents in favour of the consortium of banks and also bound by the schedule of payment of the credit facility availed by it. iv. To avail the cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l bearing No. K-1/32, Model Town-II Delhi. b) Pledge of total 39, 48, 068 shares held by the promoters on pari passu basis among the consortium member banks. c) Pledge of 50% of shares out offresh capital of ₹ 24 crores to be raised by the promoters on pari passu basis among the consortium member banks. v. That further at the request of Corporate Debtor Company, the Financial Creditor vide Sanction Letter dated 27.02.2012 renewed the following Credit Facilities to the tune of ₹ 37.00 Crore on the terms and conditions mentioned therein the said sanction letter. vi. The Corporate Debtor availed the credit facility from the Financial Creditor but did not stick to the conditions of payment as a result the accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant, therefore, we would like to consider those documents and the written submissions. 5. Ld. Counsel for the petitioner submitted that although the NPA was declared on 06.08.2012 but again loan was sanctioned on 12.01.2013, which was subsequently modified on 12.01.2015. He further submitted that on 29.04.2014, there was restructuring of the credit facility and again on 24.03.2017, the Corporate Debtor sent a plan for OTS and the repayment of the loan, hence the application is within time. 6. In the light of the submission raised on behalf of the applicant, we have gone through the documents enclosed with the main application as well as filed through the additional affidavit. We notice that in the part-IV of the application, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess shall perhaps lead to closure of plants thus deteriorating the valuation of assets and dimming the hopes of early realization of the amount now expected keeping in mind the above, we earnestly request you to kindly take a pragmatic view and ensure that company's debts are brought down to desirable level through a deep restructuring or OTS proposed by strategic investor or through the settlement with ARCs at the earliest. 9. Therefore, at this juncture, we would like to refer the Section 18 of the Limitation Act and the same is quoted below: 18. Effect of acknowledgment in writing.- (1) Where, before the expiration of the prescribed period for a suit of application in respect of any property or right, an acknowledgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 18 of the Limitation Act. 11. At this juncture, we would also like to refer to the decision of Babulal Vardharji Gurjar vs. Veer Gurjar Aluminium Industries Pvt. Ltd. Reported in Manu/SCOR/47022/2019 wherein the Hon'ble Apex Court held: Even in the later decisions, this Court has consistently applied the declaration of law in B.K. Educational Services (supra). As noticed, in the case of Vashdeo R. Bhojwani (supra), this Court rejected the contention suggesting continuing cause of action for the purpose of application under Section 7 of the Code while holding that the limitation started ticking from the date of issuance of recovery certificate dated 24.12.2001. Again, in the case of Gaurav Hargovind bhai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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