TaxTMI 
TaxTMI 
2021 (5) TMI 578
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....with the Resolution professional. 3. Brief facts of the case, as mentioned in the Application which are relevant to the issue in question, are as follows: (1) It is submitted that the application under section 7 of the Code, 2016 filed by the Financial Creditor, Allahabad Bank was allowed and the Corporate Debtor was admitted to the Corporate Insolvency Resolution Process vide Order dated 19.02.2020 of this Tribunal in C.P. (IB) No. 357/BB/2019. Mr. R.S. Doddabyregowda was appointed as the Interim Resolution Professional who was subsequently appointed as the Resolution Professional in the first meeting of Committee of Creditors dated 18.03.2020. (2) The Applicant is a company registered as NBFC registered with the RBI and has provided financial assistance vide sanction letter dated 06.04.2014 for Corporate Term Loan of Rs. 10 Crore having term period of 84 months, a machinery term loan of Rs. 1,80,00,000/- vide sanction letter dated 30.06.2016 for term period of 60 months and another machinery term loan for Rs. 1,06,00,000/- vide sanction letter dated 24.03.2017 having a term period of 60 months. (3) It is submitted that the Corporate Debtor has execut....
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.... (8) In response to the said communication, the Applicant issued Reply dated 10.04.2020 clarifying the legal position that in the absence of acknowledgement of debt, the limitation is to be reckoned from 06.11.2019 being the date on which the accounts were classified as NPA or from the date on which the last payment was paid under each account. The email is extracted for ready reference: "As aspired by you for the admission of pending claims, kindly find the clarification beneath. 1. Corporate Loan- dtd. 6.04.2015 a. Limit is time barred for admission - Any Acknowledge of Debt if obtained please furnish the same Answer:- This is to inform you that the said limit is not barred by time because as per section 18 of the limitation act states acknowledgement of existing liability in lieu of which period of limitation is extended. In this said account the deposit of money demonstrate the acceptance of default on part of the corporate debtor and same can be checked from the statement of accounts as the last payment received from the corporate debtor was 10.07.2019. 2. Machinery Loan-dtd. 30.06.2016- Any Acknowledge of Debt if obt....
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....l that it appears that the RP has counted limitation from the date of loan agreement which is not correct in the eyes of law. The statement of Accounts clearly removes all doubt with respect to the date of default and establishes the fact that the claim of Hero FinCorp Limited without any doubt is within limitation. The email dated 24.02.2020 by the Applicant is extracted herein below: "The Hon'ble NCLAT, New Delhi in the matter of 'Harsukhbhai P. Lakkad v. Bank of Baroda & Ors.' reported in has clearly held that the for date of default/NPA is to considered for counting the period of limitation under Article 137 of the Limitation Act, 1963. Further, the same has been reiterated by you in your email dated April 10, 2020. It is an undisputed position of law that the limitation has to be counted from the date of default, NPA and the last payment made by the corporate debtor as explained to you in my earlier mail. In the instant case, the account of the borrower/corporate debtor namely Southern Batteries has been classified by Hero FinCorp Limited as NPA on 06 November, 2019. Thus, by no stretch of imagination, it can be said that the claim of the Hero Fin....
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....& Machinery along with mortgage of land properties. On 14.03.2020 it was communicated to the applicant with a request to furnish additional documents of Acknowledgement of debt and Security interest. (2) It is submitted that the Applicant failed to submit required additional documents called for by the respondent, i.e., acknowledgment of debt if any and charge creation for security interest on Mortgaged lands on or before the last date mentioned in the public announcement, as per the provisions of Regulation 12(3) of IBBI (CIRP) Regulations, 2016. Since the Respondent failed to produce the above said documents, its claim Application was declined by the Respondent on discussion in the Second CoC meeting held on 27.04.2020. The relevant paragraph of minutes of meeting is reproduced below: "RP informed the members that Claim of M/s. Hero Fincorp Ltd. for Rs. 315.02 lac is declined for admission, as the said Financial Creditor failed to give clarification on EMT of land and under Limitation Act. And RP further informed the members the said FC may approach NCLT for a remedy in this regard. In first CoC Mr. B. Radhakrishnan suspended Director of CD informed the....