# In the matter of Sanil Prakash Sahu vs. Kotak Mahindra Bank Limited & Ors.

> NCLAT judgment dated 2023-11-17. Citation: TCN-2023-NCLAT-00073. This is an appeal against the order dated 01.09.2023 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 17 Nov 2023
- **Citation:** TCN-2023-NCLAT-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sanil-prakash-sahu-vs-kotak-mahindra-bank-limited-ors-68934c99

## Summary

### Background

This is an appeal against the order dated 01.09.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Indore Bench) in CP(IB) No. 06/MP/2019, which admitted an application under Section 7 of the IBC filed by Kotak Mahindra Bank Ltd (KMBL) against Gwalior Polypipes Ltd, initiating the Corporate Insolvency Resolution Process (CIRP). The appeal was filed by the erstwhile Director of the Corporate Debtor, Mr. Sanil Prakash Sahu.

## Facts

State Bank of India (SBI) granted financial assistance to Gwalior Polypipes Ltd from 1984, which was renewed/enhanced/reduced over time. SBI sanctioned credit facilities aggregating to Rs.3.95 crores on 02.02.2002. The Corporate Debtor executed an Agreement of Hypothecation of Goods and Assets in favor of the Financial Creditor. The Corporate Debtor was declared NPA in 2001 for failing to pay interest. SBI issued a Legal Notice on 18.08.2003 recalling the loan facility and filed an application before DRT in 2004. SBI assigned the debt to Kotak Mahindra Bank Ltd (KMBL) on 16.01.2006. DRT passed an order on 15.03.2007 directing the Corporate Debtor to pay Rs.1.81 crore and issued an Interim Recovery Certificate. KMBL issued a Demand Notice under Section 13(2) of the

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## Issues and analysis

### Issue 1: Whether the impugned order is erroneous since the claim on which Section 7 application was admitted …

**Ratio:** Section 18 of the Limitation Act, 1963 states that where, before the expiration of the

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**Reasoning:** The Adjudicating Authority scrutinized the balance sheets and the caveats/notice attached

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

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**Application:** The tribunal applied the ratio of the Bishal case to the facts of the present

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Sanil Praka…
- **Respondents:** Gwalior Polypipes…; Kotak Mahindra…

## Timeline

- **1984-01-01 — Financial Assistance by…**: State Bank of India (SBI) granted financial assistance to Gwalior Polypipes Ltd from…
- **2002-02-02 — Credit Facilities…**: SBI sanctioned credit facilities…

## 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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