# In the matter of Rohit Suri vs. Rajasthan Financial Corporation and Anr.

> NCLAT judgment dated 2025-04-03. Citation: TCN-2025-NCLAT-00132. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 by the…

- **Court:** NCLAT
- **Order date:** 3 Apr 2025
- **Citation:** TCN-2025-NCLAT-00132
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rohit-suri-vs-rajasthan-financial-corporation-and-anr-a06bb85c

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 by the Appellant, Mr. Rohit Suri, against the order dated 17.05.2024 passed by the National Company Law Tribunal, Jaipur Bench. The Rajasthan Financial Corporation (Financial Creditor) initiated the Corporate Insolvency Resolution Process (CIRP) against Ruby Buildestates Limited (Corporate Debtor). The appellant challenged the initiation of CIRP, primarily arguing that the application was barred by limitation. The Respondent No. 1 sanctioned a loan of ₹3.50 Crores to the Corporate Debtor in July 2009, disbursing ₹2.40 Crores on 17.07.2009. The loan was repayable in 19 Equal Quarterly Instalments (EQIs). The Respondent No. 1 took physical possession of the mortgaged property on 23.02.2010

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## Facts

In July 2009, Rajasthan Financial Corporation (RFC) sanctioned a loan of ₹3.50 Crores to Ruby Buildestates Limited, disbursing ₹2.40 Crores on 17.07.2009. The loan was to be repaid in 19 equal quarterly installments (EQIs). RFC issued a demand notice on 13.01.2010 and took physical possession of the mortgaged property on 23.02.2010. Several homebuyers challenged the auction notice in the Rajasthan High Court, which granted an ex-parte stay on 26.05.2010. Ruby Buildestates proposed multiple settlements, which RFC rejected. RFC filed a company petition on 12.08.2021, seeking initiation of CIRP, which was challenged by Ruby Buildestates, arguing it was barred by limitation. Ruby Buildestates made multiple OTS proposals to RFC, acknowledging the debt, with the last one on

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## Issues and analysis

### Issue 1: Whether the company petition filed by the Respondent No. 1 before the Adjudicating Authority was …

**Ratio:** The law of limitation is based upon public policy that there should be an end to

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**Reasoning:** The Appellate Tribunal considered the OTS letters, the issue of extension of limitation,

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**Interpretation:** The limitation period for initiating CIRP is generally three years from the

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**Application:** In this case, the Appellate Tribunal held that the Company Petition was filed

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Rohit…
- **Respondents:** Ruby Buildestates…; Rajasthan…
- **Advocates:** Naresh Kumar…; Manit Moo…; +2 more

## Timeline

- **2009-07-01 — Loan Sanc…**: Rajasthan Financial Corporation sanctioned a loan of ₹3.50 Crores to Ruby Buildestates…
- **2009-07-17 — Loan Disb…**: Rajasthan Financial Corporation disbursed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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