# In the matter of Bishal Jaiswal Vs. Asset Reconstruction Company (India) Ltd. & Anr., Company Appeal (AT) (Ins.) No. 385 of 2020

> NCLAT judgment dated 2020-12-22. Citation: TCN-2020-NCLAT-00006. This case involves a reference made by a three-member bench of the National Company Law…

- **Court:** NCLAT
- **Order date:** 22 Dec 2020
- **Citation:** TCN-2020-NCLAT-00006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bishal-jaiswal-vs-asset-reconstruction-company-59f58b8e

## Summary

### Background

This case involves a reference made by a three-member bench of the National Company Law Appellate Tribunal (NCLAT) regarding the reconsideration of a judgment in 'V. Padmakumar Vs. Stressed Assets Stabilization Fund (SASF) & Anr.' The corporate debtor, Corporate Power Ltd., defaulted on loan repayments, leading to the recalling of the loan facility by the financial creditor, State Bank of India, and the consortium lenders. The lenders assigned the debt to Asset Reconstruction Company (India) Ltd. The financial creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) for initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The Adjudicating Authority (National Company Law Tribunal), Kolkata

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## Facts

Corporate Power Ltd. availed a loan from Consortium Lenders to set up a coal-based power plant at Chandwa in Jharkhand. The company defaulted on repayments, leading to the recalling of the loan facility by State Bank of India and the Consortium Lenders. Notices were issued on June 20, 2015, under Section 13(2) of the SARFAESI Act, 2002, demanding Rs.59,97,80,02,973/-. The lenders assigned the debt to Asset Reconstruction Company (India) Ltd. (Respondent No. 1). The account of Corporate Debtor was declared as NPA on 28th February, 2014. An application under Section 7 of the Insolvency and Bankruptcy Code, 2016, was filed in December 2018. The Adjudicating Authority (NCLT), Kolkata Bench, admitted the application. Mr. Bishal Jaiswal, the Ex-Director of the Corporate

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## Issues and analysis

### Issue 1: Whether the entries in the Balance Sheet amount to an acknowledgement of debt under Section 18 of …

**Ratio:** The ratio is that the filing of the Balance Sheet/Annual Return being mandatory under

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**Reasoning:** The court reasoned that if the argument is accepted that the Balance Sheet / Annual

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**Interpretation:** The interpretation is that the mandatory filing of balance sheets under the

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**Application:** In this specific case, the court applied this principle by stating that the

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## Parties

- **Judges:** Bansi Lal…; Venugop…; +3 more
- **Appellants:** Bishal Ja…
- **Respondents:** Corporate Power…; Asset Reconstructi…

## Timeline

- **2015-06-20 — SARFAESI…**: Lenders issued notices under Section 13(2) of the SARFAESI Act demanding…
- **2014-02-28 — Account Decla…**: The account of Corporate…

## 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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