# In the matter of M M Ramachandran Vs. South Indian Bank Ltd. & Ors. CA(AT)(Ins) No. 1509 of 2019

> NCLAT judgment dated 2020-01-22. Citation: TCN-2020-NCLAT-00509. The case involves an appeal against the initiation of Corporate Insolvency Resolution Process…

- **Court:** NCLAT
- **Order date:** 22 Jan 2020
- **Citation:** TCN-2020-NCLAT-00509
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/m-m-ramachandran-vs-south-indian-bank-ltd-ors-ca-a5241fc0

## Summary

### Background

The case involves an appeal against the initiation of Corporate Insolvency Resolution Process (CIRP) against M/s Atlas Gold Townships (India) Pvt. Ltd. The CIRP was initiated based on an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) filed by South Indian Bank Ltd., the Financial Creditor. The Appellant/Promoter challenged the initiation of CIRP on the grounds that the application under Section 7 was barred by limitation and that there was no record of default enclosed in terms of Section 7(3)(b). The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on December 31, 2015, and the Section 7 application was filed on April 10, 2019.

## Facts

South Indian Bank Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Atlas Gold Townships (India) Pvt. Ltd. The Adjudicating Authority (National Company Law Tribunal), Kochi Bench, Kochi, admitted the application and initiated CIRP. M M Ramachandran, the Appellant/Promoter, challenged this decision, arguing that the application was barred by limitation and lacked evidence of default. The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on December 31, 2015, and the Section 7 application was filed on April 10, 2019. The Respondent Bank relied on an email and letter from May 2016 to support that the Appellant acknowledged the dues as of May 30,

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code was barred by …

**Ratio:** Section 18 of the Limitation Act, 1963, states that where, before the expiration of the

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**Reasoning:** The court reasoned that the email dated May 2, 2016, sent by the Appellant, constituted

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**Interpretation:** The interpretation of Section 18 of the Limitation Act hinges on whether the

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**Application:** The court applied the ratio of Section 18 to the facts by determining that the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** M M Ramach…
- **Respondents:** M/s Atlas Gold…; South Indian Bank…

## Timeline

- **2015-12-31 — Account Decla…**: The account of the Corporate Debtor was…
- **2016-05-02 — Email Acknowled…**: Appellant sent an email acknowledging 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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