# In the matter of Vijay Kumar Ghai Vs. State Bank of India & Anr. CA(AT)(Ins) No.1136 of 2019

> NCLAT judgment dated 2019-12-09. Citation: TCN-2019-NCLAT-00043. The 'State Bank of India' (Financial Creditor) filed an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 9 Dec 2019
- **Citation:** TCN-2019-NCLAT-00043
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vijay-kumar-ghai-vs-state-bank-of-india-anr-ca-6ca749eb

## Summary

### Background

The 'State Bank of India' (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the 'corporate insolvency resolution process' against ‘Priknit Retails Limited' (Corporate Debtor). The Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, Chandigarh admitted the application via an order dated September 11, 2019. The appellant challenged this order before the Appellate Tribunal.

## Facts

The 'State Bank of India' initiated a corporate insolvency resolution process against ‘Priknit Retails Limited' by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority, the National Company Law Tribunal, Chandigarh Bench, admitted the application on September 11, 2019. Vijay Kumar Ghai, the Appellant, challenged this order before the National Company Law Appellate Tribunal, arguing that the application was barred by limitation. The Appellant also expressed willingness to settle the matter with the State Bank of India and potentially file an application under Section 12A of the I&B Code. The State Bank of India holds 91% of the voting share. The Appellant moved before the ‘State Bank of India' for 'one time

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## Issues and analysis

### Issue 1: Whether the application filed under …

**Ratio:** The ratio is based on the provisions of the Insolvency and Bankruptcy Code, 2016,

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**Reasoning:** The court considered the appellant's argument regarding the limitation period for the

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**Interpretation:** The interpretation involves understanding the interplay between Section 7

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**Application:** The court did not make a definitive ruling on the limitation issue. Instead, it

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Vijay Kuma…
- **Respondents:** Priknit Retails…; State Bank of…

## Timeline

- **2019-09-11 — Order by Adjudicating…**: The National Company Law Tribunal, Chandigarh Bench, admitted the application filed by…
- **2019-10-25 — Matter taken up by…**: The matter was taken up by the National Company Law Appellate Tribunal. The Appellant…

## 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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