CIRP plea dismissed as barred by limitation as financial creditor couldn’t substantiate debt fell within limitation

  • Blog|News|Insolvency and Bankruptcy Code|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 13 October, 2021

Recent Posts

Blog, News, Company Law

[Opinion] Company & Its Directors Penalized for Using Private Placement Funds in Existing Account Before Filing Return of Allotment

Blog, News, Company Law

SEBI Amends Buy-Back Regulations | Excludes Shares Held by Non-Participating Promoters from Entitlement Ratio

Latest from Taxmann

Corporate insolvency resolution process - Limitation period

Case Details: Asset Reconstruction Company India Ltd. v. Manoharamma Hotel Investments (P.) Ltd. - [2021] 131 taxmann.com 13 (NCLT- Chennai )

Judiciary and Counsel Details

    • R. Varadharajan, Judicial Member and Anil Kumar B, Technical Member
    • P. Elaya Rajkumar, Adv. for the Appellant. 
    • Shubharanjani Ananth, Adv. for the Respondent.

Facts of  the Case

In 2005, bank sanctioned a term loan to ADPL/principal borrower and in order to secure a loan corporate debtor executed guarantee agreement in favour of the bank in 2006.

Upon failure to repay due amounts by ADPL, bank classified accounts of ADPL as NPA in 2007. Thereafter, bank assigned term loan to ARCIL.

NCLT Held

The Financial creditor/ARCIL filed CIRP application in 2018 alleging that corporate debtor had defaulted in making payment and the Corporate debtor contended that CIRP application was time barred as default had happened in year 2007, and that financial creditor had wilfully chosen not to state ‘Date of default’ in application.

Since the financial creditor had failed to place on record any shred of the document under the law to substantiate that debt fell well within period of limitation, CIRP application filed by financial creditor was to be dismissed as barred by limitation.

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied