# In the matter of Bijendra Prasad Mishra vs. HS Mercantile Pvt. Ltd. & Ors.

> NCLAT judgment dated 2025-09-15. Citation: TCN-2025-NCLAT-00477. The appeal challenges the order dated 13.12.2024 passed by the National Company Law Tribunal,…

- **Court:** NCLAT
- **Order date:** 15 Sept 2025
- **Citation:** TCN-2025-NCLAT-00477
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bijendra-prasad-mishra-vs-hs-mercantile-pvt-ltd-ors-1a8098b6

## Summary

### Background

The appeal challenges the order dated 13.12.2024 passed by the National Company Law Tribunal, Kolkata Bench (Court-I), in CP No. (IB) 1781/KB/2019, which accepted an application under Section 7 of the IBC filed by Respondent No. 2 and initiated CIRP against Respondent No. 1/CD.

## Facts

M/s Subh Chintak Commotrade Pvt. Ltd. (now amalgamated with Drolia Agencies Pvt. Ltd./Respondent No. 2) disbursed an inter-corporate loan of Rs. 50,00,000/- to the appellant on 07.11.2009.

The corporate debtor deducted and deposited TDS on the interest amounting to Rs. 4,50,000/- (@ 9% p.a.) on the principal amount of Rs. 50,00,000/- from the assessment year 2010-2011 till assessment year 2015-2016.

The Respondent No. 2 served a notice on the CD on 04.04.2016, which was ignored by the appellant.

The financial statement of 2016-2017 of the corporate debtor/appellant shows a clear acknowledgment of debt.

The appellant claims that the Rs. 50,00,000/- was given as advance money for the supply of fabric and the debt was discharged by the supply of material/goods on 01.04.2016.

…

## Issues and analysis

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

**Ratio:** Section 18 of the Limitation Act allows for the extension of the limitation period based

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**Reasoning:** The mentioning of the loan in the balance sheet of the CD of date 31.03.2017 amounts to a

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**Interpretation:** The acknowledgment of debt within the cut-off date extends the limitation

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**Application:** The Tribunal held that the application was filed within the permissible time,

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## Parties

- **Judges:** Rakesh Kuma…; Mohd. Faiz Alam…; +1 more
- **Appellants:** Bijendra Prasad…
- **Respondents:** HS Mercantile…; M/s HS Mercantile…; +1 more
- **Other parties:** Drolia Agencies…; Subh Chintak…; +2 more
- **Advocates:** Krishnendu…; Ritesh Ag…; +3 more

## Timeline

- **13.12.2024 — Order Da…**: Order passed by the National Company Law Tribunal, Kolkata Bench (Court-I), in CP No.…
- **07.11.2009 — Loan Disbur…**: M/s Subh Chintak Commotrade Pvt. Ltd. disbursed an inter-corporate loan of Rs.…

## 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)

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