# In the matter of Tottempudi Salalith vs. State Bank of India & Ors. Company Appeal (AT) (CH) (Insolvency)No. 04 of 2021

> NCLAT judgment dated 2021-06-25. Citation: TCN-2021-NCLAT-00218. The case involves an appeal against the order dated 12.01.2021 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 25 Jun 2021
- **Citation:** TCN-2021-NCLAT-00218
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tottempudi-salalith-vs-state-bank-of-india-ors-company-appeal-123ab48c

## Summary

### Background

The case involves an appeal against the order dated 12.01.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench) in CP (IB) No. 625/7/HDB/2019. The appellant, Tottempudi Salalith, is challenging the initiation of Corporate Insolvency Resolution Process (CIRP) against Totem Infrastructures Limited. The primary contention revolves around the issue of limitation, with the appellant arguing that the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) was filed beyond the permissible period. The appellant also raised concerns about the RBI circular dated 12.02.2018, which was held ultra vires of Section 35AA of the Banking Regulation Act, and its impact on the proceedings.

## Facts

Tottempudi Salalith filed an appeal against the order dated 12.01.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench) in CP (IB) No. 625/7/HDB/2019, which initiated CIRP against Totem Infrastructures Limited. State Bank of India, the first respondent, filed the application under Section 7 of the IBC based on recovery certificates issued by the Debt Recovery Tribunal (DRT). The appellant argued that the application was barred by limitation, as it was filed more than three years after the date of NPA. The appellant also contended that the RBI circular dated 12.02.2018, which was held ultra vires of Section 35AA of the Banking Regulation Act, affected the proceedings. The corporate debtor, Totem Infrastructures Limited, had addressed

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## Issues and analysis

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

**Ratio:** The limitation period for filing an application under Section 7 of the IBC is three years

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**Reasoning:** The tribunal considered the appellant's argument that the date of NPA should be

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**Interpretation:** The interpretation of Section 7 of the IBC and Section 18 of the Limitation Act

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**Application:** In this case, the tribunal found that the recovery certificates issued by the

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## Parties

- **Judges:** Venugop…; Balvinder…
- **Appellants:** Tottempudi…
- **Respondents:** Totem Infrastructu…; State Bank of…
- **Advocates:** Amit Ge…; Dhananjaya…; +2 more

## Timeline

- **2019-01-12 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench) passed an…
- **2020-01-29 — Letter from Corporate…**: The Corporate Debtor addressed a letter to the Union Bank of India and SBI, agreeing in…

## 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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