# In the matter of Aditi Health Oils Private Limited CP(IB)No. 1178-KB-2018

> NCLT judgment dated 2019-11-21. Citation: TCN-2019-NCLT-00510. The case involves an application for the initiation of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 21 Nov 2019
- **Citation:** TCN-2019-NCLT-00510
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aditi-health-oils-private-limited-cpibno-1178-kb-2018-93464eba

## Summary

### Background

The case involves an application for the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Aditi Health Oils Private Limited. The application was filed by JM Financial Asset Reconstruction Company Ltd., the financial creditor, due to the corporate debtor's default in paying a financial debt of Rs. 87,76,61,337/-. UCO Bank had initially granted and disbursed a loan of Rs. 39,25,000/- to the corporate debtor, which later became a Non-Performing Asset (NPA). UCO Bank assigned the right of recovery to the financial creditor.

## Facts

UCO Bank granted and disbursed a loan of Rs. 39,25,000/- to M/s Aditi Health Oils Private Limited on 2012-06-30. The Corporate Debtor failed to repay the loan, leading UCO Bank to declare the account as NPA on 2012-10-31. UCO Bank assigned the right to recover the loan to JM Financial Asset Reconstruction Company Ltd. on 2014-03-31. JM Financial Asset Reconstruction Company Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating CIRP against M/s Aditi Health Oils Private Limited due to a default of Rs. 87,76,61,337/-. The Corporate Debtor raised defenses, including the claim being barred by limitation and the application not being filed by a duly authorized person. The Corporate Debtor also argued that recovery proceedings

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## Issues and analysis

### Issue 1: Whether the application for initiation …

**Ratio:** Section 18 of the Law of Limitation states that acknowledgment of the debt by the

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**Reasoning:** The court noted that the Corporate Debtor acknowledged the debt in its balance sheet for

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**Interpretation:** The acknowledgment of debt in the balance sheet extends the limitation period

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**Application:** The Corporate Debtor's acknowledgment of the debt in its balance sheet for the

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** JM Financial…
- **Respondents:** M/s Aditi Health…

## Timeline

- **2012-06-30 — Loan Disbur…**: UCO Bank granted and disbursed a loan of Rs. 39,25,000/- to M/s Aditi Health Oils Private…
- **2012-10-31 — Account Decla…**: UCO Bank declared the loan account of M/s Aditi Health Oils Private Limited as a…

## 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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