# In the matter of New Bharat Refractories Ltd. Vs. Dhendai Tea and Industries Pvt. Ltd. CA(AT)(Ins) No. 1161 of 2019

> NCLAT judgment dated 2019-12-12. Citation: TCN-2019-NCLAT-00024. The case involves an appeal against the order of the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 12 Dec 2019
- **Citation:** TCN-2019-NCLAT-00024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/new-bharat-refractories-ltd-vs-dhendai-tea-and-industries-pvt-ltd-ca-5e9d8cdc

## Summary

### Background

The case involves an appeal against the order of the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, which dismissed an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by New Bharat Refractories Ltd. (Financial Creditor) against Dhendai Tea and Industries Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority dismissed the application on the ground that it was barred by limitation.

## Facts

New Bharat Refractories Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against Dhendai Tea and Industries Pvt. Ltd. The Adjudicating Authority, Kolkata Bench, dismissed the application, citing that it was barred by limitation. The loan became due and payable on March 31, 2015. The application under Section 7 was filed on October 10, 2018. The key fact is the time elapsed between the date the loan became due and the date the application was filed, which determined whether the application was within the limitation period.

## Issues and analysis

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

**Ratio:** An application under Section 7 of the Insolvency and Bankruptcy Code must be filed within

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**Reasoning:** The court agreed with the Adjudicating Authority's finding that the application was filed

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**Interpretation:** The interpretation of the law on limitation is that legal proceedings must be

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**Application:** In this case, the loan became due on March 31, 2015, and the application was

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** New Bharat…
- **Respondents:** Dhendai Tea and…

## Timeline

- **2015-03-31 — Loan Due…**: The loan amount became due and…
- **2018-10-10 — Application…**: Application under Section 7 of the…

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