2020 (2) TMI 286

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Pranay Agarwal, Mr. Avinash Kumar Sharma, Advocates JUDGEMENT JUSTICE JARAT KUMAR JAIN, MEMBER(JUDICIAL) The Appellants, in the present Company Appeal (AT) (Insolvency) No.672 of 2019 are the Directors of M/s Debi Fabtech Pvt Ltd, 'the Corporate Debtor' against whom the Corporate Insolvency Resolution Process ('for short CIRP) has been initiated and moratorium has been imposed from the date of the admission till the completion of CIRP by the impugned order passed by National Company Law Tribunal, Kolkata Bench vide their order dated 25.4.2019. The Appellants are Mr.Sesh Nath Singh and Mr. Akshay Kumar Singh, Directors of the Corporate Debtor i.e. M/s Debi Fabtech Pvt Ltd in the said appeal filed under Section 61 of the Insolvency ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e SARFEASI Act, 2002 till further orders. Before that on 24.12.2014 possession notice under Section 13(4) of SARFEASI Act, 2002 alongwith Rule 9 of Security Interest (Enforcement) Rules 2002 has been issued against the corporate debtor and the possession order was issued on 11.5.2017 by the District Magistrate, Hooghly. On 27.8.2018, financial creditor has filed application under Section 7 of I&B Code before the Adjudicating Authority, NCLT, Kolkata Bench, Kolkata. 4. Learned Adjudicating Authority by its impugned order found that the corporate debtor did not dispute two facts that it has received loan from financial creditor and there is default in paying loan amount. Hence the application under Section 7 of I&B Code has been admitted a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n under Section 7 of I&B Code on 27.08.2018 after about 5 years and 5 months from the date of accrual of cause of action i.e. 31.03.2013 whereas as per Article 137 of Limitation Act the application may be filed within three years from the date of accrual of cause of action i.e. till 30.03.2016. Thus the application filed under Section 7 of I&B Code is apparently time barred, therefore, the Adjudicating Authority has wrongly admitted the application. Hence the impugned order is liable to be set aside. 7. Learned counsel for the Respondent vehemently opposed the arguments and submitted that it is true that the account was declared NPA on 31.03.2013. Thereafter, the Respondent exercised his remedy under the existing law within the prescribe....