CIRP plea filed after 3 years of date of default was to be dismissed as barred by limitation: NCLAT

Case details: Kotak Mahindra Bank Ltd. v. Indian Speciality Fats Ltd. - [2021] 130 taxmann.com 37 (NCLAT- New Delhi)

Judiciary and Counsel Details

• • Justice Bansi Lal Bhat, ACTG. Chairperson and Dr. Ashok Mishra, Technical Member.
  • Nirmal Goenka, Adv. for the Appellant.

Facts of the Case

The State Bank of India (SBI) had sanctioned a loan to a corporate debtor in 1996. However, due to default in repayment of debts, the loan account of the corporate debtor was declared as NPA.

In this regard, the SBI filed recovery proceedings before DRT in the year 2000 and the final order came to be passed on 23-10-2002 culminating in the issuance of the recovery certificate which was pending execution before the Recovery Officer.

Meanwhile, the SBI, by deed of assignment dated 16-1-2006, assigned a loan to the applicant and the Applicant filed Corporate Insolvency Resolution Process (CIRP) application under section 7 of the IBC against the corporate debtor.

NCLAT Held

The NCLT dismissed the CIRP application for being barred by limitation and, therefore, a prayer of an applicant to trigger CIRP against corporate debtor had rightly been declined.

Case Review

• • Kotak Mahindra Bank Ltd. v. Indian Speciality Fats Ltd. [2021] 130 taxmann.com 36 (NCLT-Cuttack) (para 3) affirmed.