# 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-00014. The appeal was filed under Section 61 of the I&B Code, 2016, against the order dated August…

- **Court:** NCLAT
- **Order date:** 20 Dec 2022
- **Citation:** TCN-2022-NCLAT-00014
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/abhay-narendra-lodha-vs-bank-of-baroda-company-appeal-b1eb5b4a

## Summary

### Background

The appeal was filed under Section 61 of the I&B Code, 2016, against the order dated August 12, 2022, passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench-I, Mumbai) in C.P. (IB) No. 1807/MB/2018, which admitted the application filed by the 1st Respondent. The Appellant, being the Suspended Director of the Corporate Debtor, preferred the appeal, arguing that the application filed by the Respondent was barred by limitation.

## Facts

The case involves an appeal against the admission of a Section 7 application under the I&B Code for initiating CIRP against Topworth Urja and Metals Ltd. The Appellant, Mr. Abhay Narendra Lodha, is the Suspended Director of the Corporate Debtor. The Respondent, Bank of Baroda, filed the application claiming a default of Rs. 218,14,20,222.95. The Corporate Debtor had been granted various credit facilities by the Respondent Bank, which were later restructured through a Master Restructuring Arrangement (MRA) dated March 30, 2015, and a Supplemental Working Capital Consortium Agreement dated 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. The Appellant argued that the application

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## Issues and analysis

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

**Ratio:** The trigger for initiating CIRP by a Financial Creditor is the date of 'default' on the

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**Reasoning:** The court reasoned that the date of NPA cannot be taken as the date of default for the

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**Interpretation:** Section 3(12) of the I&B Code, 2016 defines 'default' as 'means a

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

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## Parties

- **Judges:** Ashok Bh…; Kanthi Na…; +2 more
- **Appellants:** Abhay Narendra…
- **Respondents:** Topworth Urja and…; Bank of B…

## Timeline

- **2015-03-27 — Date of…**: The account of the Corporate…
- **2015-03-30 — Master Restructuring…**: MRA entered into between the…

## 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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