# In the matter of State Bank of India Vs. Vibha Agro Tech Limited CA (AT) (Ins) No. 636 of 2020

> NCLAT judgment dated 2021-03-05. Citation: TCN-2021-NCLAT-00329. The appeal arises from an order dated 27th February 2020 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 5 Mar 2021
- **Citation:** TCN-2021-NCLAT-00329
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-vibha-agro-tech-limited-ca-ab6cf04d

## Summary

### Background

The appeal arises from an order dated 27th February 2020 passed by the Adjudicating Authority/National Company Law Tribunal, Hyderabad Bench, which rejected the application filed by the Appellant, State Bank of India, under Section 7 of the Insolvency and Bankruptcy Code (I&B Code). The Adjudicating Authority rejected the application primarily on the ground that it was barred by limitation, considering the date of declaring the NPA as the date of default.

## Facts

The State Bank of India (Appellant) granted credit facilities to Vibha Agro Tech Limited (Respondent) effective from 26th March 2011. The Respondent defaulted on loan repayments. A CDR package was approved, and a Master Restructuring Agreement (MRA) was dated 26th September 2013. The Respondent submitted a Revival Proposal on 15th July 2014, which was rejected. The Respondent's account exited the CDR package on 31st January 2015 due to defaults. The Appellant issued a notice under Section 13(2) of the SARFAESI Act on 20th May 2015. The Respondent challenged this action by filing S.A. No.552 of 2015 before the DRT. The Appellant also filed O.A. No.417 of 2016 before the DRT, Hyderabad. The MD of the Respondent participated in a Joint Lenders Meeting on 22nd September

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## Issues and analysis

### Issue 1: Whether the application filed by the Appellant under Section 7 of the I&B Code was barred by …

**Ratio:** The limitation period for filing an application under Section 7 of the I&B Code is

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**Reasoning:** The Adjudicating Authority and the NCLAT relied on the Supreme Court's judgment in B.K.

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**Interpretation:** The interpretation of the Limitation Act, 1963, specifically Article 137, in

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**Application:** In this specific case, the date of NPA was 30th April 2013. The application

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## Parties

- **Judges:** Jarat Kuma…; KanthiNar…
- **Appellants:** State Bank of…
- **Respondents:** Vibha Agro Tech…
- **Advocates:** Sanjay…; V.M. K…; +2 more

## Timeline

- **2011-03-26 — Credit Facilities…**: State Bank of India granted credit…
- **2013-09-26 — Master Restructuring…**: A Master Restructuring…

## 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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