# In the matter of Abhay Narendra Lodha vs. Bank of Baroda, Company Appeal (AT)(Ins) No. 997 of 2022

> NCLAT judgment dated 2022-12-20. Citation: TCN-2022-NCLAT-00012. The appeal was filed under Section 61 of the I&B Code, 2016, against the Adjudicating…

- **Court:** NCLAT
- **Order date:** 20 Dec 2022
- **Citation:** TCN-2022-NCLAT-00012
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/abhay-narendra-lodha-vs-bank-of-baroda-company-appeal-1c84e25e

## Summary

### Background

The appeal was filed under Section 61 of the I&B Code, 2016, against the Adjudicating Authority's order dated August 12, 2022, which admitted the application filed by the 1st Respondent, Bank of Baroda, under C.P. (IB) No. 1807/MB/2018. The Appellant, the Suspended Director of the Corporate Debtor, Topworth Urja and Metals Ltd., argued that the application was barred by limitation, as it was filed more than three years after the date of NPA declaration. The Respondent Bank contended that the application was filed within three years of the first date of default under the Master Restructuring Agreement (MRA) and Supplemental Working Capital Consortium Agreement.

## Facts

The Corporate Debtor, Topworth Urja and Metals Ltd., received credit facilities from the Respondent Bank, Bank of Baroda, and other consortium lenders. These facilities included term loans, working capital, and cash credits. On March 27, 2015, the facilities were restructured, and a Master Restructuring Arrangement (MRA) was entered into on March 30, 2015. A supplemental working capital consortium agreement followed on May 14, 2015. The Respondent Bank issued a recall notice on February 1, 2016, revoking the MRA and demanding payment of Rs. 174.61 crores as of December 31, 2015. The Respondent Bank declared the Corporate Debtor's account as NPA on March 27, 2015. The Respondent Bank filed a Section 7 application on May 17, 2018, seeking initiation of CIRP. The

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** Section 18 of the Limitation Act, 1963, allows for a fresh period of limitation from the

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**Reasoning:** The NCLAT reasoned that the Corporate Debtor's annual report for the financial year

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**Interpretation:** The interpretation of Section 18 of the Limitation Act in conjunction with

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**Application:** The NCLAT applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** Ashok Bh…; KanthiNar…; +1 more
- **Appellants:** Abhay Narendra…
- **Respondents:** Topworth Urja and…; Bank of B…

## Timeline

- **2015-03-27 — Restructuring of Credit…**: The facilities granted to the Corporate Debtor…
- **2015-03-30 — Master Restructuring…**: MRA entered into between the Respondent and the Corporate Debtor wherein the parties…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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