# In the matter of Bank of India and Anr. Vs. Coastal Oil Gas Infrastructure Pvt. Ltd. CA(AT)(Ins)No. 1448 of 2019

> NCLAT judgment dated 2020-09-21. Citation: TCN-2020-NCLAT-00115. The appeal was filed by Bank of India and Central Bank of India, the Financial Creditors,…

- **Court:** NCLAT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLAT-00115
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bank-of-india-and-anr-vs-coastal-oil-gas-infrastructure-pvt-ltd-ca-0be01813

## Summary

### Background

The appeal was filed by Bank of India and Central Bank of India, the Financial Creditors, under Section 61 of the Insolvency & Bankruptcy Code, 2016, challenging the order dated 30th October, 2019, passed by the National Company Law Tribunal, Hyderabad Bench. The NCLT had rejected the application under Section 7 of the I&B Code for initiating Corporate Insolvency Resolution Process against Coastal Oil Gas Infrastructure Pvt. Ltd., the Corporate Debtor, on the ground that the application was barred by limitation, having been filed more than three years after the default. The Financial Creditors had sanctioned a term loan of Rs. 641.85 Crores to the Corporate Debtor. The Corporate Debtor failed to repay the dues, leading to the account being classified as a

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## Facts

Bank of India and Central Bank of India (Financial Creditors) sanctioned a term loan of Rs. 641.85 Crores to Coastal Oil Gas Infrastructure Pvt. Ltd. (Corporate Debtor) for constructing crude oil tank facilities. The Corporate Debtor entered into a Terminal Service Agreement (TSA) with Nagarjuna Oil Corporation Ltd. (NOCL). The Corporate Debtor failed to repay the dues, leading to the account being classified as a Non-Performing Asset (NPA). The account was restructured, and a Second Amendment Agreement was executed on 31st March, 2015. The Financial Creditors issued a notice of recall on 7th December, 2017. The Financial Creditors filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, on 19th September, 2018, before the Adjudicating

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditors under Section 7 of the Insolvency and …

**Ratio:** The limitation period for filing an application under Section 7 of the Insolvency and

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority failed to consider the revival letter

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**Interpretation:** The interpretation of the limitation period under the Insolvency and Bankruptcy

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**Application:** In this case, the NCLAT applied the ratio that the revival letter extended the

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## Parties

- **Judges:** Venugop…; Balvinder…; +1 more
- **Appellants:** Bank of…
- **Respondents:** Coastal Oil Gas…

## Timeline

- **2011-07-25 — Board Reso…**: Board of the Corporate Debtor resolved to…
- **2011-07-22 — Board Reso…**: Member of the Corporate Debtor passed resolution under section 293 (1) of Companies Act,…

## 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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