# In the matter of Sandeep Kumar Bhagat Vs. Punjab National Bank CA(AT)(Ins)No.1003 of 2019

> NCLAT judgment dated 2020-06-18. Citation: TCN-2020-NCLAT-00220. This Company Appeal arises from an Impugned Order dated 23rd August 2019 passed by the…

- **Court:** NCLAT
- **Order date:** 18 Jun 2020
- **Citation:** TCN-2020-NCLAT-00220
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sandeep-kumar-bhagat-vs-punjab-national-bank-ca-af48846c

## Summary

### Background

This Company Appeal arises from an Impugned Order dated 23rd August 2019 passed by the Adjudicating Authority/National Company Law Tribunal, Guwahati Bench, Guwahati in Company Petition (I.B.) No. 24/GB/2019. The Adjudicating Authority admitted the application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Appellant, the suspended Director of Shree Sai Prakash Alloys Private Limited, challenged the order, arguing that the petition was barred by limitation and that the Adjudicating Authority failed to consider the status quo order issued by the Guwahati High Court. The Respondent, Punjab National Bank, contended that the Appellant had admitted liabilities through a consolidated OTS and that the petition was not time-barred due to acknowledgments of

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## Facts

Sandeep Kumar Bhagat, the suspended Director of Shree Sai Prakash Alloys Private Limited (the Corporate Debtor), filed an appeal against the admission of an insolvency petition by Punjab National Bank (the Respondent). The Corporate Debtor had availed credit facilities from the Respondent Bank in 2014, with an alleged default occurring on 12th May 2015. The Respondent Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming Rs. 84,46,17,450.68. The petition was filed on 19th May 2018. During the pendency of the petition, the Respondent Bank entered into OTS negotiations with the Corporate Debtor. The Corporate Debtor made a part payment of Rs. One Crore on 19th August 2019. The Respondent Bank later revoked the OTS. The Appellant

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## Issues and analysis

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

**Ratio:** Section 18 of the Limitation Act provides that where, before the expiration of the

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**Reasoning:** The court considered the Appellant's argument that the petition was time-barred based on

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**Interpretation:** The interpretation of Section 18 of the Limitation Act is crucial. An

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**Application:** In this case, the Corporate Debtor's acknowledgment of debt on 03rd March 2018,

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## Parties

- **Judges:** Venugop…; V. P. S…; +1 more
- **Appellants:** Sandeep Kumar…
- **Respondents:** Shree Sai Prakash…; Punjab National…

## Timeline

- **2014-01-01 — Credit Facilit…**: Shree Sai Prakash Alloys Private Limited availed credit facilities from Punjab National…
- **2015-05-12 — Alleged D…**: Alleged default…

## 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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