TaxTMI 
TaxTMI 
2022 (8) TMI 1003
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....June, 2022 passed by the Adjudicating Authority. By which Order, the Application under Section 7 filed by the UCO Bank-the Respondent herein has been admitted. 3. The UCO Bank has sanctioned financial credit facilities to the Corporate Debtor on different dates. The UCO Bank declared the Corporate Debtor as Non-Performing Assets on 30.09.2012 and thereafter Notices were issued under Section 13(2) of the SARFAESI Act, 2002. The Corporate Debtor has taken steps to challenge the proceedings before the DRT, the UCO Bank filed an Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 on 28th March, 2019 being CP(IB) No. 600/KB/2019 on which notices were issued. An exhaustive Reply was filed by the Corporate Debtor. The UCO Ba....
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....ction 7 Application was barred by time is contained in paragraph 11.3 which is to the following effect: "11.3 The second contention of the Corporate Debtor is that the instant petition is barred by limitation. It can be seen that the date of default is mentioned to be 30.09.2012 i.e. the date on which the account became NPA. Accordingly, the limitation period for filing the application would ordinarily end on 30.09.2015. However, balance sheets of the Corporate Debtor from the year 2012 to 2019 have been placed on record by the Financial Creditor in the supplementary affidavit dated 06.02.2020. In these Balance Sheets, multiple acknowledgements of debt to the Financial Creditor have been made by the Corporate Debtor, specifically, ....
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....tatement of law contained in Bengal Silk Mills (supra), that there is a compulsion in law to prepare a balance sheet but no compulsion to make any particular admission, is correct in law as it would depend on the facts of each case as to whether an entry made in a balance sheet qua any particular creditor is unequivocal or has been entered into with caveats, which then has to be examined on a case by case basis to establish whether an acknowledgement of liability has, in fact, been made, thereby extending limitation under Section 18 of the Limitation Act." 8. The law laid down by the Hon'ble Supreme Court in the above judgment is clear. It has been held that whether an acknowledgment is an acknowledgment within the meaning of Section 18 ....
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....owing effect: "1. Refer to Note No. 2.25, which states that - "During the current year as well as from the financial year 2012-13, the Company has not provided any interest on the following back accounts, as the bank has declared the account as NPA. i. Term Loan 1 ii. Term Loan 2 iii. U.CO. Bank CC Account iv. External Commercial Borrowings Instalment of Term Loans from UCO Bank, which was to begin from December 2011, but not a single instalment has been repaid during the year. Also repayment of External Commercial Borrowing has not been done. The quantification of interest payable has not been done in absence of bank confirmation." Any information on subsequent movements on the ca....
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....eb 2009 the company availed suppliers credit till Feb 2010. After that it was converted into buyers credit. The Company applied for a fresh Term Loan of Rs. 475 lacs in December 2008. In July 2009 a new sanction was given after 8 months for a term loan of Rs. 352 Lacs increasing the liability of the buyers credit to Rs. 538 Lacs and earmarking Rs. 300 Lacs as Term Loan 1 and Rs. 238 Lacs as Term Loan 2. The rationale behind the increase of foreign exchange liability in the middle of its tenure is questionable. Hence, the company only accepts the value of Rs. 463 Lacs as its liability for letter of credit. The benefit of interest subsidy under TUFS for term loan 2 has not been cleared by the bank inspite of several requests....
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....tee Limit to Rs. 5.57 crores in their submitted proposal. It was discussed and agreed between the company and the bank that working capital was essential to enable the company to pay the Term Loan on schedule and as a result of which the Bank issued the company fresh sanctions of working capital limits from June 2012 to 29/09/2012. This sanction however contained terms and conditions that were not possible to be complied with and the company did not accept the sanction. ......................." 12. The Managements Contention as noted above itself give details of financial facilities/credit facilities taken from the Bank time to time and the statement noted above clearly acknowledge the debt of the Bank. 13. Learned Counsel fo....