# In the matter of Sri Kaustuv Ray Vs. State Bank of India & Anr. Company Appeal (AT) (insolvency) No. 804 of 2020

> NCLAT judgment dated 2021-01-20. Citation: TCN-2021-NCLAT-00397. The appeal challenges the initiation of Corporate Insolvency Resolution Process (CIRP) by…

- **Court:** NCLAT
- **Order date:** 20 Jan 2021
- **Citation:** TCN-2021-NCLAT-00397
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sri-kaustuv-ray-vs-state-bank-of-india-anr-company-appeal-260e68a3

## Summary

### Background

The appeal challenges the initiation of Corporate Insolvency Resolution Process (CIRP) by State Bank of India (Financial Creditor) against the Corporate Debtor. The appellant argues that the claim was barred by limitation as the default occurred in 2013. The CIRP was triggered by the Financial Creditor by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 on April 1, 2019. The account of the Corporate Debtor was classified as NPA on June 17, 2013.

## Facts

The account of the Corporate Debtor was classified as NPA on June 17, 2013. The Financial Creditor, State Bank of India, initiated Corporate Insolvency Resolution Process (CIRP) by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 on April 1, 2019. The appellant contended that the claim was barred by limitation. The default occurred in 2013, and the application was filed more than three years after the default date. The Adjudicating Authority admitted the application, leading to the appeal. The key fact is the date of default and the date of application under Section 7, which determines whether the application was filed within the limitation period.

## Issues and analysis

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

**Ratio:** Article 137 of the Limitation Act provides a limitation period of three years from the

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**Reasoning:** The court relied on precedents from the Supreme Court and the Appellate Tribunal, which

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**Interpretation:** The interpretation is that the limitation period for initiating CIRP under

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**Application:** In this case, the default occurred in 2013, and the application was filed on

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## Parties

- **Judges:** Bansi Lal…; KanthiNar…; +1 more
- **Appellants:** Kaustuv…
- **Respondents:** State Bank of…
- **Advocates:** Abhijeet…; Arjun As…; +11 more

## Timeline

- **2013-06-17 — Account Classified as…**: The account of the Corporate Debtor was…
- **2019-04-01 — Application under…**: The Financial Creditor filed an application under Section 7 of the Insolvency and…

## 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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