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

> NCLAT judgment dated 2020-09-25. Citation: TCN-2020-NCLAT-00102. The case involves an appeal against the admission of an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 25 Sept 2020
- **Citation:** TCN-2020-NCLAT-00102
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bishal-jaiswal-vs-asset-reconstruction-company-a7f18e3d

## Summary

### Background

The case involves an appeal against the admission of an application under Section 7 of the Insolvency and Bankruptcy Code (I&B Code) by the Adjudicating Authority. The Corporate Debtor, Corporate Power Limited, had availed loan facilities from a consortium of lenders for setting up a coal-based plant. The Corporate Debtor failed to repay the dues, leading to the State Bank of India issuing a loan recall notice. Subsequently, the lenders assigned the debt to Asset Reconstruction Company (India) Ltd, the Financial Creditor, who then filed for initiation of CIRP against the Corporate Debtor. The Corporate Debtor contested the application, raising issues of limitation and lack of cause of action.

## Facts

Corporate Power Limited (Corporate Debtor) availed loan facilities from a consortium of lenders, including Infrastructure Finance Co. Ltd., State Bank of Hyderabad, State Bank of Bikaner & Jaipur, State Bank of India, State Bank of Patiala, and State Bank of Travancore, for setting up a 1080 MW coal-based plant. The loan amount aggregated to Rs. 2175 crore for Phase-I and Rs. 2387 crore for Phase-II. The Corporate Debtor failed to repay the dues under the facilities. State Bank of India issued a loan recall notice on March 27, 2015, which was replied to by the Corporate Debtor on March 28, 2015. The Consortium Lenders issued notices on June 20, 2015, under Section 13(2) of the SARFAESI Act, 2002, demanding Rs. 5997.80 crore. The Banks assigned the debt to Asset

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## Issues and analysis

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

**Ratio:** The ratio is based on the interpretation of Section 18 of the Limitation Act, 1963, which

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**Reasoning:** The court considered arguments from both sides regarding the date of default and whether

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**Interpretation:** The interpretation involves understanding the interplay between the I&B

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**Application:** The court applied the legal principles to the specific facts of the case,

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## Parties

- **Judges:** Jarat Kuma…; Balvinder…; +1 more
- **Appellants:** Bishal Ja…
- **Respondents:** Corporate Power…; Asset Reconstructi…

## Timeline

- **2014-02-28 — NPA Decla…**: State Bank of India declared the…
- **2015-03-27 — Loan Recall…**: State Bank of India issued a loan…

## 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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