# In the matter of Manoj Jayaswal Vs Punjab National Bank & Anr

> NCLAT judgment dated 2022-10-11. Citation: TCN-2022-NCLAT-00165. The case involves an appeal against the order dated 17.07.2020 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 11 Oct 2022
- **Citation:** TCN-2022-NCLAT-00165
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/manoj-jayaswal-vs-punjab-national-bank-anr-95f91f2a

## Summary

### Background

The case involves an appeal against the order dated 17.07.2020 passed by the Adjudicating Authority (National Company Law Tribunal, Kolkata Bench, Kolkata), which allowed an application filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, requiring the Corporate Debtor, Jas Infrastructure and Power Limited, to be liquidated. The Corporate Debtor had approached Punjab National Bank for a term loan facility to set up a thermal power project. A loan agreement was executed, and a consortium of banks sanctioned term loans. Due to non-disbursement of funds, the Corporate Debtor could not meet its obligations, leading to its accounts being declared NPA by Punjab National Bank on 15.06.2015. An application under Section 7 of the

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## Facts

Jas Infrastructure and Power Limited (Corporate Debtor) sought a term loan from Punjab National Bank (Respondent No. 1) to establish a 1320 MW thermal power project. A consortium of eleven banks, led by Axis Bank, sanctioned loans aggregating to Rs. 5920 Crores. Due to non-disbursement of funds, the Corporate Debtor defaulted, and its account was declared NPA on 15.06.2015. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code on 11.09.2018. The Corporate Debtor contested the application, arguing it was barred by limitation. The Adjudicating Authority rejected this argument, noting that the balance sheet as of 31.03.2016 acknowledged the debt, extending the limitation period. The total debt due was Rs. 689,19,83,028.19/-.

## Issues and analysis

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

**Ratio:** Section 18 of the Limitation Act states that acknowledgment of a debt in the balance

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**Reasoning:** The Adjudicating Authority held that the outstanding amount of default reflected in the

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**Interpretation:** The court interpreted Section 18 of the Limitation Act in conjunction with the

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**Application:** The court applied the ratio to the facts by determining that the Corporate

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## Parties

- **Judges:** Rakesh Kuma…; Alok Sriv…
- **Appellants:** MANOJ JAY…
- **Respondents:** Jas Infrastructure…; Punjab ΝΑΤΙΟΝΑAL…

## Timeline

- **2015-06-15 — Account decla…**: Punjab National Bank declared the account of Jas Infrastructure and Power Limited as…
- **2018-09-11 — Application under…**: Punjab National Bank filed an application under Section 7 of the Insolvency and…

## 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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