# In the matter of Sanjay Kumar Makhariya vs. State Bank of India & Anr.

> NCLAT judgment dated 2023-07-28. Citation: TCN-2023-NCLAT-00335. The case involves an appeal against an order dated 24.03.2023, related to an application…

- **Court:** NCLAT
- **Order date:** 28 Jul 2023
- **Citation:** TCN-2023-NCLAT-00335
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sanjay-kumar-makhariya-vs-state-bank-of-india-anr-60071f08

## Summary

### Background

The case involves an appeal against an order dated 24.03.2023, related to an application filed by the respondent under Section 7 of the Insolvency and Bankruptcy Code, 2016, for the resolution of a sum of Rs.7,73,30,22,118.85/-. The corporate insolvency resolution process was initiated, moratorium was imposed, and an Interim Resolution Professional was appointed. The appellant argued that the application was barred by limitation as it was filed more than a decade after the account was declared NPA on 11.07.2012. The respondent contended that the application was filed on the basis of a Recovery Certificate dated 21.02.2020, issued pursuant to a decision of the Debt Recovery Tribunal, Hyderabad, and thus within the period of limitation.

## Facts

The State Bank of India initiated a corporate insolvency resolution process against Sanjay Kumar Makhariya under Section 7 of the Insolvency and Bankruptcy Code, 2016. The account was declared NPA on 11.07.2012. The application under Section 7 was filed on 27.10.2022. The Adjudicating Authority admitted the application on 30.09.2022, imposed a moratorium, and appointed an Interim Resolution Professional. The application was based on a Recovery Certificate dated 21.02.2020, issued pursuant to a decision of the Debt Recovery Tribunal, Hyderabad. The appellant argued that the application was barred by limitation, while the respondent contended that the Recovery Certificate gave rise to a fresh cause of action. The amount in question was Rs.7,73,30,22,118.85/-.

## Issues and analysis

### Issue 1: Whether the Application filed by the Respondent (Bank) on 21.02.2020, on the basis of a Recovery …

**Ratio:** A judgment and/or decree for money in favor of the financial creditor, passed by the DRT,

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**Reasoning:** The court relied on the decisions of the Hon'ble Supreme Court in the cases of 'Dena

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**Interpretation:** The interpretation of Section 7 of the IBC, in conjunction with the Limitation

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**Application:** In this case, the Recovery Certificate was issued on 21.02.2020, and the

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## Parties

- **Judges:** Rakesh Kuma…; Shreehsa…
- **Appellants:** Sanjay Kumar…
- **Respondents:** State Bank of…

## Timeline

- **2012-07-11 — Account Decla…**: The account was declared…
- **2020-02-21 — Recovery Certificate…**: Recovery Certificate was issued by the…

## 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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