# In the matter of Manoj Jayswal  Vs. Punjab National Bank Compnay Appeal (AT)(Ins) No. 770 of 2020

> NCLAT judgment dated 2022-10-11. Citation: TCN-2022-NCLAT-00166. 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-00166
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/manoj-jayswal-vs-punjab-national-bank-compnay-appeal-d0f9c7b2

## 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, and its accounts were declared NPA. Punjab National Bank filed an application under Section 7 of the Code to initiate

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## Facts

Jas Infrastructure and Power Limited (Corporate Debtor) sought a term loan facility from Punjab National Bank (Respondent No. 1) to establish a 1320 MW supercritical Coal based Thermal Power Project. A consortium of eleven banks, led by Axis Bank, sanctioned term loans aggregating to Rs. 5920 Crores. Due to non-disbursement of funds, the Corporate Debtor could not meet its obligations, leading to its accounts being declared NPA by Respondent No. 1 on 15.06.2015. Respondent No. 1 filed an application under Section 7 of the Insolvency and Bankruptcy Code on 11.09.2018 to initiate CIRP. The Corporate Debtor contested the application, arguing it was barred by limitation. The Adjudicating Authority rejected this argument, noting that the outstanding amount of default was

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## Issues and analysis

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

**Ratio:** The limitation period for filing an application under Section 7 of the Insolvency and

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**Reasoning:** The court reasoned that the outstanding amount of default reflected in the balance sheet

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**Interpretation:** Section 18 of the Limitation Act is interpreted to mean that any acknowledgment

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**Application:** In this case, the court applied the ratio to the fact that the Corporate

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## Parties

- **Judges:** Rakesh Kuma…; Alok Sriv…
- **Appellants:** MANOJ JAY…
- **Respondents:** Jas Infrastructure…; Punjab National…
- **Advocates:** Abhijeet…; Sandeep…; +8 more

## Timeline

- **2015-06-15 — Account decla…**: The account of Jas Infrastructure and Power Limited was declared NPA by Punjab National…
- **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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