# In the matter of Kishore Katare Vs. Bank of India and Anr. CA(AT)(Ins) No. 693 of 2020

> NCLAT judgment dated 2020-12-21. Citation: TCN-2020-NCLAT-00009. The appeal was filed by Katare Spinning Mills Limited (Corporate Debtor) against the order…

- **Court:** NCLAT
- **Order date:** 21 Dec 2020
- **Citation:** TCN-2020-NCLAT-00009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kishore-katare-vs-bank-of-india-and-anr-ca-9b54fb4e

## Summary

### Background

The appeal was filed by Katare Spinning Mills Limited (Corporate Debtor) against the order dated 17th July, 2020, passed by the Adjudicating Authority, National Company Law Tribunal, Mumbai Bench, Court No. II in CP No. 3460/IBC/NCLT/MB/MAH/2018. The Adjudicating Authority had admitted the application filed by Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016.

## Facts

Bank of India, the Financial Creditor, filed an application under Section 7 of the IBC against Katare Spinning Mills Limited, the Corporate Debtor, on 30.08.2018, alleging a debt of INR 23.90 CR and default on 30.06.2015. The Adjudicating Authority allowed the application. Bank of India had sanctioned a term loan facility of Rs. 9,00,00,000/- and a cash credit facility of Rs. 6,00,00,000/- to the Corporate Debtor vide a sanction letter dated 14.08.2013. The Corporate Debtor's account was declared NPA on 31.03.2015. The Appellant availed Rs. 25 Crores from Bank of India on 14.08.2013 for modernization of existing units, working capital requirements, and a solar project. The Appellant implemented a solar project, but the Government of Maharashtra did not declare a grid

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## Issues and analysis

### Issue 1: Whether the application under …

**Ratio:** The date of default is

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**Reasoning:** The Tribunal has held in numerous matters that the date of default is the date of NPA.

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**Interpretation:** The date of NPA is considered the date of default for the purpose of limitation

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**Application:** The date of NPA in this case was 31.03.2015. The application under Section 7

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## Parties

- **Judges:** Anant Bijay…; Bansi Lal…; +1 more
- **Appellants:** Kishore K…
- **Respondents:** Katare Spinning…; Bank of…

## Timeline

- **2013-08-14 — Sanction of Loan…**: Bank of India sanctioned term loan and cash credit facilities to Katare Spinning Mills…
- **2013-08-14 — Availing of…**: Katare Spinning Mills Limited availed Rs. 25 Crores from Bank of India for modernization…

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