# In the matter of State Bank of India vs. Krishidhan Seeds Pvt. Ltd. CA(AT)(Ins)No. 972 of 2020

> NCLAT judgment dated 2020-11-17. Citation: TCN-2020-NCLAT-00048. State Bank of India, as the Financial Creditor, filed an appeal against an order dated…

- **Court:** NCLAT
- **Order date:** 17 Nov 2020
- **Citation:** TCN-2020-NCLAT-00048
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-krishidhan-seeds-pvt-ltd-ca-600c3e19

## Summary

### Background

State Bank of India, as the Financial Creditor, filed an appeal against an order dated 2020-09-16 passed by the Adjudicating Authority (National Company Law Tribunal), Indore Bench at Ahmedabad, Court-1. The application under Section 7 of the Insolvency and Bankruptcy Code, 2016, was rejected on the grounds of limitation. The appellant argued that an acknowledgment from the Corporate Debtor, in the form of a revival letter extending the period of limitation, was overlooked by the Adjudicating Authority.

## Facts

State Bank of India (SBI), as a Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (I&B Code) before the National Company Law Tribunal (NCLT), Indore Bench. The NCLT rejected the application, citing it was barred by limitation. SBI appealed this decision to the National Company Law Appellate Tribunal (NCLAT). The appeal was against an order dated 2020-09-16. SBI argued that a One Time Settlement (OTS) proposal from Krishidhan Seeds Pvt. Ltd. (Corporate Debtor) constituted an acknowledgment of debt, extending the limitation period. The date of default was recorded as June 10, 2014, in the application filed before the Adjudicating Authority. SBI had also approached the Debts Recovery Tribunal on October 20, 2015, based on

…

## Issues and analysis

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

**Ratio:** The limitation period for applications under Section 7 of the I&B Code is three

…

**Reasoning:** The court reasoned that the application was filed more than three years after the date of

…

**Interpretation:** The interpretation of the law is that the limitation period for initiating

…

**Application:** In this case, the application was filed on September 19, 2018, more than four

…

## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** KRISHIDHAN SEEDS…

## Timeline

- **2014-06-10 — Date of D…**: The date of default is recorded as June 10, 2014, in the application to the Adjudicating…
- **2015-10-20 — Approach to Debts…**: The Financial Creditor, State Bank of India, approached the Debts Recovery Tribunal based…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-krishidhan-seeds-pvt-ltd-ca-600c3e19