TaxTMI 
TaxTMI 
2021 (5) TMI 66
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....16 against M/s. Mithilanchal Industries Private Limited, the Corporate Debtor to initiate Corporate Insolvency Resolution Process ("CIRP") of the Corporate Debtor on the ground that the Corporate Debtor committed default in paying the financial debt of Rs. 5,99,73,482/-. The date of default is 27.12.2014. 2. The following facts are not in dispute. 3. The Financial Creditor/Bank has granted and disbursed in favour of the Corporate Debtor the loan in the form of cash/credit and over draft facilities dated 06.03.2013. The Corporate Debtor could not repay the installment as agreed. Hence, the Bank filed the recovery proceedings in Debts Recovery Tribunal -II, Ahmedabad against the Corporate Debtor. This proceeding is filed after the Gover....
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....le and the same may be rejected. 6. We have gone through evidence and the material on record. We heard the Learned Counsel Mr. Ketan M. Parikh, for the Financial Creditor and the Learned Counsel Mr. Sandip Bhatt, for the Corporate Debtor at length. 7. At the outset, we note that there is 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....
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....te Debtor admitted the debt and its default. 12. Learned Counsel for the Corporate Debtor argued that the debt is time barred. According to him, as per the Bank's own statement, the date of default is 27.12.2014. This application is filed on 12.02.2019. It is filed beyond three (03) years from the date of default and it is time barred. He submitted that as per various rulings of the Hon'ble Supreme Court, right from the rulings of B.K. Education Society and Others up to the latest case of the Hon'ble Apex Court held that a date of default does not shift and if the proceedings under the I & B Code is not filed within three years from the date of default, it cannot be entertained as barred by limitation as per the Article 137 o....
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....at: "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 of the Limitation Act is applicable to proceedings under IBC and that if there is acknowledgement of debt in the balance sheets or the OTS proposal, the....
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....nsolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code, 2016. 2. The moratorium under Section 14 of Insolvency and Bankruptcy Code, 2016 is declared for prohibiting all of the following in terms of Section 14(1) of the Code. a. the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; b. transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; c. any action to foreclose, recover or enforce any security interest created by the ....
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....ement of the Corporate Debtor are under legal obligation under Section 19 of the Code extending every assistance and co-operation to the Interim Resolution Professional. Where any personnel of the Corporate Debtor, its Promoter or any other person required to assist or co-operate with IRP, do not assist or Co-operate, IRP is at liberty to make appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order. 6. This Adjudicating Authority directs the IRP to make a public announcement of initiation of Corporate Insolvency Resolution Process (CIRP) and call for submission of claims under Section 15 as required by Section 13(1)(b) of the Code. 7. It is further directed that the supply of g....