# In the matter of Kishanlal Likhmichand Bothra Vs. Canara Bank, Company Appeal (AT) (Insolvency) No. 704 of 2020

> NCLAT judgment dated 2021-03-24. Citation: TCN-2021-NCLAT-00309. The case involves an appeal against an order dated July 6, 2020, passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 24 Mar 2021
- **Citation:** TCN-2021-NCLAT-00309
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kishanlal-likhmichand-bothra-vs-canara-bank-company-appeal-693ae36f

## Summary

### Background

The case involves an appeal against an order dated July 6, 2020, passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench - IV, which admitted an application filed by Syndicate Bank (now amalgamated with Canara Bank) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Bothra Metal and Alloys Ltd, the Corporate Debtor. The Appellant, Kishanlal Likhmichand Bothra, the erstwhile Director of the Corporate Debtor, filed the appeal, arguing that the application was time-barred under Article 137 of the Limitation Act, 1963, as it was filed more than three years after the date of NPA.

## Facts

Kishanlal Likhmichand Bothra, the erstwhile Director of Bothra Metal and Alloys Ltd, filed an appeal against the order of the Adjudicating Authority (NCLT), Mumbai Bench - IV. Syndicate Bank (now amalgamated with Canara Bank) had filed an application under Section 7 of the IBC against Bothra Metal and Alloys Ltd, claiming a debt of Rs. 61,47,52,521.59/-. The Appellant argued that the application was time-barred as the date of NPA was December 3, 2015, and the application was filed on July 4, 2019, exceeding the three-year limitation period under Article 137 of the Limitation Act, 1963. The Corporate Debtor had submitted various OTS plans to the Financial Creditor. The Corporate Debtor accepted that the principal amount due and in default reflecting in their accounts

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## Issues and analysis

### Issue 1: Whether Section 18 of the Limitation Act, 1963, is applicable to proceedings under the Insolvency …

**Ratio:** Section 18 of the Limitation Act provides that an acknowledgment of present subsisting

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**Reasoning:** The NCLAT relied on the judgment of the Supreme Court of India, which held that the

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**Interpretation:** This means that if a corporate debtor acknowledges its debt in its balance

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**Application:** In this case, the NCLAT found that the Corporate Debtor had acknowledged its

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## Parties

- **Judges:** A.I.S. C…; V. P. S…
- **Appellants:** Kishanlal…
- **Respondents:** Bothra Metal and…; Canara…

## Timeline

- **2020-07-06 — Order by Adjudicating…**: The Adjudicating Authority (NCLT), Mumbai Bench - IV, passed an order admitting the…
- **2021-03-24 — Appeal H…**: The NCLAT heard the appeal filed by Kishanlal Likhmichand Bothra, the erstwhile Director…

## 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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