# In the matter of Sarang Kumar Wadhawan vs. Unity Small Finance Bank Ltd.

> NCLAT judgment dated 2025-10-17. Citation: TCN-2025-NCLAT-00527. The appeal was filed by Sarang Kumar Wadhawan, a shareholder of Privilege Power and…

- **Court:** NCLAT
- **Order date:** 17 Oct 2025
- **Citation:** TCN-2025-NCLAT-00527
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sarang-kumar-wadhawan-vs-unity-small-finance-bank-ltd-fe877bcc

## Summary

### Background

The appeal was filed by Sarang Kumar Wadhawan, a shareholder of Privilege Power and Infrastructure Private Limited (PPIL), against the order dated 15.02.2023 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, which initiated Corporate Insolvency Resolution Process (CIRP) against PPIL based on a Section 7 application by Unity Small Finance Bank Ltd.

## Facts

The Corporate Debtor, Privilege Power and Infrastructure Private Limited (PPIL), availed an overdraft facility from Punjab and Maharashtra Co-operative Bank (later Unity Small Finance Bank Ltd.) in 2007.

The Appellant, Sarang Kumar Wadhawan, is a shareholder of the Corporate Debtor.

The account of the Corporate Debtor was declared NPA on 31.08.2012.

The Financial Creditor filed a Section 7 application in 2020 to initiate CIRP against the Corporate Debtor.

The Appellant argued that the Section 7 application was barred by limitation.

The Financial Creditor argued that the limitation period was extended due to fraudulent concealment and subsequent acknowledgments of debt.

PMC Bank merged with USFBL on 25 January 2022.

…

## Issues and analysis

### Issue 1: Whether the Section 7 petition filed …

**Ratio:** The petition is not

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**Reasoning:** The NCLAT found that the financial creditor discovered the fraud in 2019, and the

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**Interpretation:** Section 17 of the Limitation Act allows for the extension of the limitation

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**Application:** The NCLAT applied these principles to the facts of the case, finding that the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Sarang Kumar…
- **Respondents:** Privilege Power…; UNITY SMALL…; +1 more
- **Other parties:** Punjab and…
- **Advocates:** Menaka Gur…; Disha…; +7 more

## Timeline

- **15.02.2023 — Impugned…**: Order passed by the National Company Law Tribunal, Mumbai Bench, initiating CIRP against…
- **N/A — Overdraft F…**: Punjab and Maharashtra Co-operative Bank advanced financial assistance to PPIL in the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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