# In the matter of Rajesh Ravji Patel Vs Pegasus Assets Reconstruction Pvt. Ltd.

> NCLAT judgment dated 2024-07-09. Citation: TCN-2024-NCLAT-00333. This case involves an appeal against the order of the National Company Law Tribunal (NCLT),…

- **Court:** NCLAT
- **Order date:** 9 Jul 2024
- **Citation:** TCN-2024-NCLAT-00333
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajesh-ravji-patel-vs-pegasus-assets-reconstruction-pvt-ltd-ad41e633

## Summary

### Background

This case involves an appeal against the order of the National Company Law Tribunal (NCLT), Mumbai, which initiated the Corporate Insolvency Resolution Process (CIRP) against Vilson Roofing Product Pvt. Ltd. The NCLT order was based on a petition filed by Pegasus Assets Reconstruction Pvt. Ltd., the assignee of a debt originally owed to Shamrao Vithal Co-operative Bank Ltd. The corporate debtor had allegedly defaulted on a secured term loan and cash credit facility. The appellant, a suspended director of the corporate debtor, challenged the NCLT's order, primarily arguing that the petition was barred by limitation and that the NCLT had incorrectly determined the date of default.

## Facts

Vilson Roofing Product Pvt. Ltd. (Corporate Debtor) defaulted on a secured term loan and cash credit facility from Shamrao Vithal Co-operative Bank Ltd. Pegasus Assets Reconstruction Pvt. Ltd. (Respondent No. 1) became the assignee of the debt. The Corporate Debtor's account was classified as an NPA on 2018-08-31. The initial date of default was 2018-04-30. A sanctioned restructuring plan was implemented on 2021-03-27, but the Corporate Debtor defaulted on its terms. Respondent No. 1 issued a notice on 2021-07-21 to clear outstanding dues. The restructuring plan was cancelled on 2022-08-26. The Corporate Debtor made payments of Rs. 10 lakhs on 2022-08-30 and Rs. 43 lakhs on 2022-09-15. Respondent No. 1 rejected further proposals and filed a Company Petition No. 9 of

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## Issues and analysis

### Issue 1: Whether the petition filed by the …

**Ratio:** The limitation period for initiating CIRP is generally three years from the date of

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**Reasoning:** The NCLAT found that the Corporate Debtor acknowledged its liability on 2021-03-27 and

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**Interpretation:** The interpretation of the limitation period under the IBC is crucial. An

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**Application:** In this case, the Corporate Debtor's acknowledgment of debt through the

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## Parties

- **Judges:** Rakesh Kuma…; Arun Ba…
- **Appellants:** Rajesh Ravj…
- **Respondents:** Vilsons Roofing…; Pegasus Assets…

## Timeline

- **2018-04-30 — Date of D…**: Initial date of default…
- **2018-08-31 — NPA Classif…**: The Corporate Debtor's account was…

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