# In the matter of Vivekanand Jha (Suspended Management of Mithilanchal Industries Pvt. Ltd.) Vs. Punjab National Bank and Anr. CA (AT) (Ins) No. 408 of 2021

> NCLAT judgment dated 2021-06-16. Citation: TCN-2021-NCLAT-00229. The appeal was filed by Vivekanand Jha, the suspended management of Mithilanchal Industries…

- **Court:** NCLAT
- **Order date:** 16 Jun 2021
- **Citation:** TCN-2021-NCLAT-00229
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vivekanand-jha-suspended-management-of-mithilanchal-industries-pvt-ltd-vs-punjab-97ce9d02

## Summary

### Background

The appeal was filed by Vivekanand Jha, the suspended management of Mithilanchal Industries Pvt. Ltd., against an order dated 15.04.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench) in C.P. (IB) No. 173/7/NCLT/AHM/2019. The Adjudicating Authority had admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Punjab National Bank against Mithilanchal Industries Pvt. Ltd. The appellant challenged the admission of the application, arguing that the claim was time-barred.

## Facts

Vivekanand Jha, representing Mithilanchal Industries Pvt. Ltd., filed an appeal against the order of the Adjudicating Authority (NCLT, Ahmedabad Bench) which admitted an application filed by Punjab National Bank (PNB) under Section 7 of the Insolvency and Bankruptcy Code (IBC). PNB claimed that Mithilanchal Industries had defaulted on loan repayments. The date of default was stated as 27.12.2014. PNB had also initiated proceedings before the Debts Recovery Tribunal (DRT) and issued a notice under Section 13(2) of the SARFAESI Act. The appellant argued that the application was time-barred as it was filed beyond three years from the date of default. PNB contended that the Corporate Debtor had acknowledged the debt through One Time Settlement (OTS) proposals, which

…

## Issues and analysis

### Issue 1: Whether the application filed by Punjab National …

**Ratio:** Section 18 of the Limitation Act states that if there is an acknowledgment of debt before

…

**Reasoning:** The Adjudicating Authority considered the OTS proposals submitted by the Corporate Debtor

…

**Interpretation:** The interpretation of Section 18 of the Limitation Act is crucial in

…

**Application:** In this case, the OTS proposals submitted by Mithilanchal Industries Pvt. Ltd.

…

## Parties

- **Judges:** A.I.S. C…; Alok Sriv…
- **Appellants:** Vivekanan…
- **Respondents:** Mithilanchal…; Punjab National…

## Timeline

- **2013-03-06 — Loan Disbur…**: Bank disbursed loan in the form of Cash…
- **2014-12-27 — Date of D…**: The Bank claimed that the date of…

## 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)

---

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/vivekanand-jha-suspended-management-of-mithilanchal-industries-pvt-ltd-vs-punjab-97ce9d02