TMI Blog2021 (5) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... f default). This application is filed on 12.02.2019, i.e. three years from the last date of acknowledgement of the debt. Hence, we hold that it is filed well within the period of limitation - Financial Creditor established that an amount of debt of ₹ 5,99,73,482/- is due and payable by the Corporate Debtor and the Corporate Debtor has committed default failed in paying the same. This application is defect filed within the limitation. Hence, we admit the Corporate Debtor in the Corporate Insolvency Resolution Process. Application admitted - moratorium declared. - CP ( IB ) No. 173/7/NCLT/AHM/2019 - - - Dated:- 15-4-2021 - Madan B. Gosavi, Member (J) And Virendra Kumar Gupta, Member (T) For the Appellant : Ketan M. Parikh, Learned Counsel For the Respondents : Sandip Bhatt, Learned Counsel ORDER DECISION Madan B. Gosavi, Member (J) (Through Video Conferencing) 1. M/s. Punjab National Bank, the Financial Creditor filed this application under Section 7 of the of the Insolvency and Bankruptcy Code, 2016 against M/s. Mithilanchal Industries Private Limited, the Corporate Debtor to initiate Corporate Insolvency Resolution Process ( CIRP ) of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no dispute of the fact that the Corporate Debtor has committed default in paying the financial debt more than rupees one lakh (i.e. the threshold limit of debt under Section 4 of the IB. Code) to the Financial Creditor. 8. The Corporate Debtor contended that the Bank wrongly declared its loan account to be a Non Performing Asset and this fact has been established by the judgment of Hon'ble DIRT and Hon'ble Bombay High Court. We hold that we are not required to consider whether the loan account was rightly declared to be NPA or not because the competent tribunal already recorded its findings on this issue. However, we noted that provisions of Section 7(1) of the IB. Code restrict us only to record findings whether - default occurred? or not. 9. The term Default is well defined under Section 3(12) of the IB. Code as non-payment of the debt as a whole or any part or installment of the amount as become due and payable and is not paid by the Corporate Debtor. In this case, it is not in dispute that the Corporate Debtor failed to pay the loan-installment as agreed, it has committed default in paying debt of more than rupees one lakh. Hence, the Corporate Debtor has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Bank Ltd. and Anr. has held that if a bank had filed proceeding under SARFAESI Act in Debts Recovery Tribunal and then files proceeding under Section 7 in the National Company Law Tribunal, then the period during which the Bank's proceedings under SARFAESI Act was pending, has to be excluded while reckoning the period of limitation as per Article 14 of Law of Limitation. In this case, if that period is excluded, then this application cannot be said to be a time barred. Moreover, Hon'ble NCLAT in case of Kishanlal Likhmichand Bothra Vs. Canara Bank, Civil Appeal No. 704 of 2020 has held that: Fresh period of limitation from the date of which acknowledgement is said shall start as per Section 18 of the Limitation Act 15. We considered submissions of Learned Counsels for both the parties. We note that whether the period of limitation gets extended upon acknowledgement of debt or not is the point completely been answered by the Hon'ble NCLAT in case of Kishanlal Likhmichand Bothra Vs. Canara Bank. It has been held by Hon'ble NCLAT that: 13. Considering above judgment of the Hon'ble Supreme Court of India, we have no difficulty to state that Section 18 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; d. the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 3. The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process or until this Adjudicating Authority approves the Resolution Plan under sub-section (1) of the Section 31 or passes an order for liquidation of Corporate Debtor Company under Section 33 of the Insolvency Bankruptcy Code, 2016, as the case may be. 4. We hereby appoint Mr. Pinakin Shah, having Registration No. IBBI/IPA-002/IP-00106/2017-18/10248, address: A-201, Siddhi Vinayak towers, B/h. BMW Showroom, Next to Kataria House, Opp. S.G. Highway, Makarba, Ahmedabad - 380051, email: cspinakinco@gmail.com, Mobile No. 9227223377 to act as an Interim Resolution Professional under Section 13(1)(c) of the Code. He shall conduct the Corporation Insolvency Resolution Process as per the provision of Insolvency and Bankruptcy Code, 2016 r.w. Regulation made there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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