# In the matter of Deepak Vegpro Pvt. Ltd. Vs. Shree Hari Agro Industries Ltd. Company Appeal (AT)(Ins) No. 1085 of 2019

> NCLAT judgment dated 2022-10-11. Citation: TCN-2022-NCLAT-00169. Deepak Vegpro Pvt. Ltd., as a financial creditor, filed an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 11 Oct 2022
- **Citation:** TCN-2022-NCLAT-00169
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/deepak-vegpro-pvt-ltd-vs-shree-hari-agro-industries-ltd-company-appeal-765fb164

## Summary

### Background

Deepak Vegpro Pvt. Ltd., as a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Shree Hari Agro Industries Ltd., the corporate debtor, claiming a debt of Rs. 412.52 crores. The NCLT, Kolkata, dismissed the application. The appellant, Deepak Vegpro, obtained a term loan of Rs. 4.50 crores from IDBI in 1996, to be repaid in quarterly installments with 21% interest. The respondent defaulted, and IDBI initiated recovery proceedings. IDBI assigned the loan to SASF, which then assigned it to the appellant in 2007. The appellant claimed the respondent admitted liability in balance sheets from 1998 to the date of filing the Section 7 application. The appellant's Section 7 application was rejected on grounds of being

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## Facts

Deepak Vegpro Pvt. Ltd. (Appellant) filed a Section 7 application under the IBC against Shree Hari Agro Industries Ltd. (Respondent/Corporate Debtor) for a debt of Rs. 412.52 crores. The debt originated from a term loan of Rs. 4.50 crores taken by the Respondent from IDBI in 1996, with a 21% interest rate, to be repaid in quarterly installments. The Respondent defaulted, leading IDBI to initiate recovery proceedings. IDBI assigned the loan to SASF, which later assigned it to the Appellant in 2007 for Rs. 2.50 crores. The Appellant claimed the Respondent admitted the debt in its balance sheets from 1998 to 2018. The NCLT dismissed the Section 7 application, citing it as time-barred and noting discrepancies in the debt amount. The Appellant argued that the balance sheet

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## Issues and analysis

### Issue 1: Whether the Section 7 application filed by …

**Ratio:** The limitation period for filing a Section 7 application is governed by Article 137 of

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**Reasoning:** The court found that the acknowledgments in the balance sheets were not unequivocal due

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**Interpretation:** The court interpreted Section 18 of the Limitation Act and relevant Supreme

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**Application:** The court applied the ratio to the facts by examining the balance sheets and

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## Parties

- **Judges:** Rakesh Kuma…; KanthiNar…; +1 more
- **Appellants:** Deepak Vegpro…
- **Respondents:** Shree Hari Agro…
- **Advocates:** Narendra M…; Anindita…; +8 more

## Timeline

- **1996-07-11 — Loan Agre…**: IDBI grants a term loan of Rs. 4.50…
- **1998-04-01 — First Install…**: The first installment of the…

## 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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