UCO Bank, a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) before the National Company Law Tribunal (NCLT), Mumbai Bench-IV, against Deegee Orchards Private Ltd, the corporate debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). The NCLT dismissed the application, holding it to be barred by limitation. UCO Bank then filed an appeal before the National Company Law Appellate Tribunal (NCLAT) challenging the NCLT's order. The appeal centered on whether the application was indeed barred by limitation, considering the acknowledgements of debt in the corporate debtor's balance sheets and One Time Settlement (OTS) proposals.
UCO Bank sanctioned credit facilities to Deegee Orchards Private Ltd. The account of the corporate debtor was declared NPA on 13.11.2014. The bank filed an application under Section 7 of the IBC, which was dismissed by the NCLT on the ground of limitation. The Appellant argued that the balance sheets of the Corporate Debtor for the financial year ending 31.03.2017 contained an acknowledgement of debt, extending the period of limitation. The Appellant also relied on OTS proposals made by the Corporate Debtor. The Adjudicating Authority did not consider the OTS letters, stating that the admissions were made beyond the applicability of the period of limitation. The Corporate Debtor made a part payment of Rs. 25 lakhs against the OTS proposal on 20.11.2018. The AGM where
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UCO Bank approved a Cash Credit of Rs.10.35…
The Appellant renewed…
UCO Bank, a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) before the National Company Law Tribunal (NCLT), Mumbai Bench-IV, against Deegee Orchards Private Ltd, the corporate debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). The NCLT dismissed the application, holding it to be barred by limitation. UCO Bank then filed an appeal before the National Company Law Appellate Tribunal (NCLAT) challenging the NCLT's order. The appeal centered on whether the application was indeed barred by limitation, considering the acknowledgements of debt in the corporate debtor's balance sheets and One Time Settlement (OTS) proposals.
UCO Bank sanctioned credit facilities to Deegee Orchards Private Ltd. The account of the corporate debtor was declared NPA on 13.11.2014. The bank filed an application under Section 7 of the IBC, which was dismissed by the NCLT on the ground of limitation. The Appellant argued that the balance sheets of the Corporate Debtor for the financial year ending 31.03.2017 contained an acknowledgement of debt, extending the period of limitation. The Appellant also relied on OTS proposals made by the Corporate Debtor. The Adjudicating Authority did not consider the OTS letters, stating that the admissions were made beyond the applicability of the period of limitation. The Corporate Debtor made a part payment of Rs. 25 lakhs against the OTS proposal on 20.11.2018. The AGM where
…UCO Bank approved a Cash Credit of Rs.10.35…
The Appellant renewed…