# In the matter of Mr. Harsukbhai P. Lakkad Vs. Bank of Baroda (Erstwhile Dena Bank) & Anr. CA(AT)(Ins) No. 32 of 2020

> NCLAT judgment dated 2020-03-12. Citation: TCN-2020-NCLAT-00313. The case involves an appeal against the admission of an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 12 Mar 2020
- **Citation:** TCN-2020-NCLAT-00313
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-harsukbhai-p-lakkad-vs-bank-of-baroda-5e38d1da

## Summary

### Background

The case involves an appeal against the admission of an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) filed by Bank of Baroda (formerly Dena Bank) against Sunrise Ginning Private Limited (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, admitted the application via an order dated November 20, 2019. The appellant challenged this order, arguing that the application was barred by limitation.

## Facts

Bank of Baroda (formerly Dena Bank) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Sunrise Ginning Private Limited (Corporate Debtor). The Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, admitted the application on November 20, 2019. The Corporate Debtor had defaulted on loan repayments, leading to the account being declared a Non-Performing Asset (NPA). The bank issued a notice under Section 13(2) of the SARFAESI Act on September 3, 2014, demanding payment of Rs. 12,57,86,554.88. The bank also initiated proceedings before the Debt Recovery Tribunal, Ahmedabad, in 2016. The application under Section 7 of the IBC was filed on October

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the …

**Ratio:** The limitation period for filing an application under Section 7 of the IBC is governed by

…

**Reasoning:** The court reasoned that the date of default or NPA declaration is a crucial factor in

…

**Interpretation:** The interpretation of the limitation period under the IBC is strict and

…

**Application:** In this case, the court found that the Bank of Baroda had declared the account

…

## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Harsukbhai P.…
- **Respondents:** Sunrise Ginning…; Bank of Baroda…

## Timeline

- **2012-09-27 — Sanction of Cash Credit…**: Dena Bank sanctioned a cash credit hypothecation facility of Rs. 9,00,00,000/- in favor…
- **2015-05-31 — Default in Re…**: The Corporate Debtor defaulted in…

---

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/mr-harsukbhai-p-lakkad-vs-bank-of-baroda-5e38d1da