# In the matter of Madhubala Chauhan vs. Phoenix Arc Pvt. Ltd.

> NCLAT judgment dated 2025-03-18. Citation: TCN-2025-NCLAT-00160. The appeal was filed under Section 61(1) of the Insolvency and Bankruptcy Code, 2016 by the…

- **Court:** NCLAT
- **Order date:** 18 Mar 2025
- **Citation:** TCN-2025-NCLAT-00160
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/madhubala-chauhan-vs-phoenix-arc-pvt-ltd-6137fd08

## Summary

### Background

The appeal was filed under Section 61(1) of the Insolvency and Bankruptcy Code, 2016 by the Appellant against the order dated 22.02.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Jaipur Bench) in CP (IB) No. 05/7/JPR/2021. The Adjudicating Authority admitted the Section 7 application filed by Respondent No. 1, Phoenix ARC Pvt. Ltd., and admitted the Corporate Debtor into Corporate Insolvency Resolution Process (CIRP). The Appellant, the suspended Director of the Corporate Debtor, preferred the appeal. The Corporate Debtor, Karni Developers & Construction Pvt. Ltd., had approached Union Bank of India for a Term Loan (TL-1) of Rs 15 Cr, sanctioned on 02.12.2005, with Rs 12.92 Cr disbursed. The Union Bank of India rejected a revised proposal

…

## Facts

Karni Developers & Construction Pvt. Ltd. sought a term loan (TL-1) of Rs 15 Cr from Union Bank of India, which was sanctioned on 02.12.2005, and Rs 12.92 Cr was disbursed. A revised proposal for enhancing the loan was rejected on 30.04.2007. TL-1 became a Non-Performing Asset (NPA) on 31.12.2008. Union Bank of India issued a notice under Section 13(2) of the SARFAESI Act on 07.01.2009, took symbolic possession on 11.05.2009, and initiated SARFAESI proceedings. On 03.12.2013, Union Bank of India assigned TL-1 to Phoenix ARC Pvt. Ltd. A Memorandum of Compromise (MoC) was entered on 03.12.2013 for a settlement amount of Rs 18.10 Cr. The Corporate Debtor requested a fresh term loan of Rs 6.90 Cr on 03.12.2013. A new Term Loan Agreement (TL-2) for Rs 3.40 Cr was

…

## Issues and analysis

### Issue 1: Whether the Section 7 application was time-barred …

**Ratio:** Section 18 of the Limitation Act, 1963 provides that a fresh period of limitation shall

…

**Reasoning:** The NCLAT found that the Corporate Debtor had acknowledged its liability in letters dated

…

**Interpretation:** The acknowledgment of debt by the Corporate Debtor before the expiry of the

…

**Application:** The Corporate Debtor's letters and balance sheets acknowledging the debt

…

## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Madhubala C…
- **Respondents:** Karni Developers…; Phoenix ARC Pvt.…

## Timeline

- **2005-12-02 — Term Loan San…**: Union Bank of India sanctioned a Term Loan (TL-1) of Rs 15 Cr to Karni Developers &…
- **2007-04-30 — Revised Proposal…**: Union Bank of India rejected a revised…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — 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/madhubala-chauhan-vs-phoenix-arc-pvt-ltd-6137fd08