# In the matter of Mr. Vijay Sitaram Dandnaik Vs. Punjab National Bank and Anr. CA (AT) (Ins) No. 90 of 2020

> NCLAT judgment dated 2021-03-02. Citation: TCN-2021-NCLAT-00341. The case involves an appeal against an order passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 2 Mar 2021
- **Citation:** TCN-2021-NCLAT-00341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-vijay-sitaram-dandnaik-vs-punjab-national-bank-and-anr-ca-05d04dff

## Summary

### Background

The case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), Mumbai Bench, which admitted a Section 7 application filed by Punjab National Bank (the Financial Creditor) against Jailaxmi Sugar Products (Nitali) Private Limited (the Corporate Debtor) under the Insolvency and Bankruptcy Code, 2016 (IBC). The appellant, Mr. Vijay Sitaram Dandnaik, challenged the NCLT's order, arguing that the application was barred by limitation. The NCLT order was based on the premise that the Corporate Debtor had received the debt amount and acknowledged its liability to repay it. The NCLT also noted that the Corporate Debtor had not made any payments to the Applicant and that the date of default was the date of classification of the Corporate Debtor's

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## Facts

Mr. Vijay Sitaram Dandnaik filed an appeal against the order of the National Company Law Tribunal (NCLT), Mumbai Bench. The NCLT had admitted a Section 7 application filed by Punjab National Bank (PNB), the Financial Creditor, against Jailaxmi Sugar Products (Nitali) Private Limited, the Corporate Debtor. The Corporate Debtor's account was classified as NPA on 31.03.2013. The Section 7 application was filed on 10.10.2019, more than six years after the NPA declaration. The Financial Creditor argued that the Corporate Debtor had acknowledged the debt through letters dated 11.06.2017 and 17.06.2017, seeking restructuring of the loan. The Hon'ble High Court of Bombay had ordered for winding up of the Company in Company Petition No. 614 of 2015 dated 04.01.2018, and an

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## Issues and analysis

### Issue 1: Whether the Section 7 application filed by the Financial Creditor was barred by limitation under …

**Ratio:** The principle of limitation dictates that legal proceedings must be initiated within a

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**Reasoning:** The court reasoned that the application was filed more than three years after the date of

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**Interpretation:** The interpretation of the law on limitation requires strict adherence to the

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**Application:** In this specific case, the court found that the application was filed on

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## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** VIJAY SITARAM…
- **Respondents:** Jailaxmi Sugar…; Punjab National…
- **Advocates:** Madhumita…; PBA Srini…; +2 more

## Timeline

- **2010-05-07 — Sanction…**: Sanction lette…
- **2010-09-28 — Sanction…**: Sanction lette…

## 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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