The case involves an appeal against the admission of an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the National Company Law Tribunal (NCLT), Mumbai Bench, against Harneshwar Agro Products Power and Yeast (I) Ltd (Corporate Debtor). The appellant, a suspended director of the Corporate Debtor, challenged the NCLT's order, arguing that the debt was time-barred and that the NCLT wrongly relied on a mortgage document. The respondent, Punjab National Bank, claimed that the dues were outstanding and relied on One Time Settlement (OTS) offers and payments to support their claim that the dues were within the limitation period.
Punjab National Bank (PNB) extended term loans and working capital facilities to Harneshwar Agro Products Power and Yeast (I) Ltd (Corporate Debtor) starting in 2005. These facilities were renewed and revised over time. As of January 6, 2019, the outstanding dues amounted to Rs. 45,82,14,984. PNB presented 17 documents to the NCLT. A SARFAESI Act notice was issued on November 12, 2011, for Rs. 12,82,06,949. The Corporate Debtor claimed the bank was vindictive and that other banks in the consortium were not made party to the proceedings. The Corporate Debtor also stated that the Bank had filed an Original Application before DRT which had abated. The NCLT rejected the limitation argument based on a Simple Mortgage Deed dated March 28, 2008, finding the debt to be due and
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Term loan was…
The account of the…
The case involves an appeal against the admission of an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the National Company Law Tribunal (NCLT), Mumbai Bench, against Harneshwar Agro Products Power and Yeast (I) Ltd (Corporate Debtor). The appellant, a suspended director of the Corporate Debtor, challenged the NCLT's order, arguing that the debt was time-barred and that the NCLT wrongly relied on a mortgage document. The respondent, Punjab National Bank, claimed that the dues were outstanding and relied on One Time Settlement (OTS) offers and payments to support their claim that the dues were within the limitation period.
Punjab National Bank (PNB) extended term loans and working capital facilities to Harneshwar Agro Products Power and Yeast (I) Ltd (Corporate Debtor) starting in 2005. These facilities were renewed and revised over time. As of January 6, 2019, the outstanding dues amounted to Rs. 45,82,14,984. PNB presented 17 documents to the NCLT. A SARFAESI Act notice was issued on November 12, 2011, for Rs. 12,82,06,949. The Corporate Debtor claimed the bank was vindictive and that other banks in the consortium were not made party to the proceedings. The Corporate Debtor also stated that the Bank had filed an Original Application before DRT which had abated. The NCLT rejected the limitation argument based on a Simple Mortgage Deed dated March 28, 2008, finding the debt to be due and
…Term loan was…
The account of the…