# In the matter of Jagdish Prasad Sarada Vs. Allahabad Bank CA (AT)  (Insolvency) No. 183 of 2020

> NCLAT judgment dated 2020-08-28. Citation: TCN-2020-NCLAT-00148. The case involves an appeal against an order dated 27.08.2019 passed by the National Company…

- **Court:** NCLAT
- **Order date:** 28 Aug 2020
- **Citation:** TCN-2020-NCLAT-00148
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jagdish-prasad-sarada-vs-allahabad-bank-ca-782a6424

## Summary

### Background

The case involves an appeal against an order dated 27.08.2019 passed by the National Company Law Tribunal (NCLT), Hyderabad Bench, which initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Sarda Agro Oils Limited, based on an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 filed by Allahabad Bank. The appellant, Jagdish Prasad Sarada, the Suspended Managing Director of the company, filed the appeal under Section 61 of the IBC. The NCLT admitted the case based on some payments made by the Appellant- Corporate Debtor into the current account of the Respondent Bank and the last payment being on 19.02.2016. The Respondent Bank had sanctioned credit facilities to the Corporate Debtor, which became

…

## Facts

Jagdish Prasad Sarada, the Suspended Managing Director of M/s. Sarda Agro Oils Limited, filed an appeal against the order of the National Company Law Tribunal (NCLT), Hyderabad Bench, which initiated Corporate Insolvency Resolution Process (CIRP) against the company. The CIRP was initiated based on an application filed by Allahabad Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The NCLT admitted the case based on payments made by the Corporate Debtor into the Respondent Bank's account, with the last payment being on 19.02.2016. Allahabad Bank had sanctioned credit facilities to Sarda Agro Oils Limited, but the account became irregular and was declared a Non-Performing Asset (NPA) on 30.09.2015. The bank also took measures under the SARFAESI

…

## Issues and analysis

### Issue 1: Whether the Application under Section 7 of the I&B Code, 2016 filed by the Respondent Bank was …

**Ratio:** The limitation period for application under section 7 of the Code is 3 years as provided

…

**Reasoning:** The NCLAT considered the submissions of both parties and the relevant provisions of the

…

**Interpretation:** The interpretation of Section 7 of the I&B Code, read with the Limitation

…

**Application:** In this case, the NCLAT had to determine whether the application filed by

…

## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Appellants:** Jagdish Prasad…
- **Respondents:** Sarda Agro Oils…; Allahabad…
- **Advocates:** S.Nandk…; Piyush…; +4 more

## Timeline

- **2012-05-31 — Sanction of Credit…**: Allahabad Bank sanctioned cash credit facility, term loan, and letter of credit to the…
- **2015-09-30 — Account Decla…**: The Corporate Debtor's account was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/jagdish-prasad-sarada-vs-allahabad-bank-ca-782a6424