# In the matter of Edelweiss Asset Reconstruction Company Ltd. vs. Perfect Engine Components Pvt. Ltd., Company Appeal (AT)(Ins) No. 840 of 2021

> NCLAT judgment dated 2022-12-22. Citation: TCN-2022-NCLAT-00004. Edelweiss Asset Reconstruction Company Limited, acting as trustee of EARC SC 30, filed an…

- **Court:** NCLAT
- **Order date:** 22 Dec 2022
- **Citation:** TCN-2022-NCLAT-00004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/edelweiss-asset-reconstruction-company-ltd-vs-perfect-engine-components-pvt-ltd-958a71c8

## Summary

### Background

Edelweiss Asset Reconstruction Company Limited, acting as trustee of EARC SC 30, filed an appeal against the order dated August 10, 2021, passed by the Adjudicating Authority (National Company Law Tribunal, Court 5, Mumbai Bench) in C.P. (IB)-1166/MB/2020. The Adjudicating Authority had dismissed Edelweiss's Section 7 application under the Insolvency and Bankruptcy Code, 2016, stating it was barred by limitation. The appeal challenges this dismissal.

## Facts

Edelweiss Asset Reconstruction Company Limited, as trustee of EARC SC 30, filed a Section 7 application under the Insolvency and Bankruptcy Code (IBC) against Perfect Engine Components Pvt. Ltd. The Adjudicating Authority (NCLT, Mumbai Bench) dismissed the application, deeming it barred by limitation. The initial default was claimed to have occurred on 31.03.2009/28.06.2012. Edelweiss argued that the Corporate Debtor acknowledged the debt through restructuring packages sanctioned on 07.11.2014 and 30.06.2017, and balance sheets for financial years 2014-15 to 2018-19. The first restructuring package was revoked on 22.09.2016. A recovery certificate was issued by DRT Pune on 22.11.2016. Consent terms were filed before DRT-I, Mumbai, on 10.10.2017. The second

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in dismissing the Section 7 application as barred …

**Ratio:** The issue of limitation is to be tested on the touchstone of the ratio of the Hon'ble

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**Reasoning:** The Hon'ble Apex Court has clearly laid down that Judgement/decree for money or

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**Interpretation:** The 'date of default' does not mean a strict interpretation that it has to be

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**Application:** The tribunal found that the Corporate Debtor had consistently acknowledged its

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## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Perfect Engine…
- **Advocates:** Neeraj Ma…; Vidhisha Ha…; +5 more

## Timeline

- **2009-03-31 — Initial D…**: Claimed date of initial…
- **2014-03-01 — Assignment Ag…**: SBI executed the Assignment…

## 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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