# In the matter of Ashok Kumar Sachdeva Vs. Kotak Mahindra Bank & Ors. CA(AT)(Ins) No. 998 of 2019

> NCLAT judgment dated 2020-01-21. Citation: TCN-2020-NCLAT-00516. This Company Appeal was filed by the Director of Sachdeva And Sons Rice Mills Limited, the…

- **Court:** NCLAT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLAT-00516
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ashok-kumar-sachdeva-vs-kotak-mahindra-bank-ors-ca-7183930a

## Summary

### Background

This Company Appeal was filed by the Director of Sachdeva And Sons Rice Mills Limited, the Corporate Debtor, against the order dated 29.07.2019 passed by the Adjudicating Authority (National Company Law Tribunal, Chandigarh Bench, Chandigarh) in CP (IB) No.341/Chd/Pb/2018. The appellant contended that the Section 7 application, which was admitted by the Adjudicating Authority, should not have been admitted because it was time-barred.

## Facts

Sachdeva And Sons Rice Mills Limited, the Corporate Debtor, secured a credit facility from the erstwhile Bank of Punjab, which later merged into Centurion Bank of Punjab Limited. The loan was sanctioned on 24th September 2002. Due to default, the account became NPA on 31st December 2004. Centurion Bank assigned the debt to Kotak Mahindra Bank on 27th September 2007. Kotak Mahindra Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for total dues of Rs.1,28,65,40,328.38. The Section 7 application was filed on 21st September 2018. Centurion Bank of Punjab Limited had filed OA against the Corporate Debtor in September 2006 before DRT, and the proceedings are still pending. A notice under the Securitisation and Reconstruction of

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the application under Section 7 of the …

**Ratio:** The ratio is based on the interpretation of Article 137 of the Limitation Act, which

…

**Reasoning:** The court reasoned that the Adjudicating Authority erred in admitting the Section 7

…

**Interpretation:** The interpretation involves understanding the application of the Limitation Act

…

**Application:** The court applied the ratio and reasoning to the specific facts of the case,

…

## Parties

- **Judges:** A.I.S. C…; KanthiNar…
- **Appellants:** Ashok Kumar…
- **Respondents:** Sachdeva And Sons…; Kotak Mahindra…

## Timeline

- **2002-09-24 — Loan Sanc…**: Loan was sanctioned to the Respondent No.3 –…
- **2004-12-31 — Account Beco…**: Due to default, the account…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/ashok-kumar-sachdeva-vs-kotak-mahindra-bank-ors-ca-7183930a