# In the matter of Ajanta Paper and General Products Limited C.P. No. 4277-MB-I&B-2018

> NCLT judgment dated 2021-10-07. Citation: TCN-2021-NCLT-00790. Phoenix ARC Private Limited, as the financial creditor, filed a company petition under Section…

- **Court:** NCLT
- **Order date:** 7 Oct 2021
- **Citation:** TCN-2021-NCLT-00790
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ajanta-paper-and-general-products-limited-cp-no-4277-mb-ib-2018-628f03a7

## Summary

### Background

Phoenix ARC Private Limited, as the financial creditor, filed a company petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Ajanta Paper and General Products Limited, the corporate debtor. The petition alleges that the corporate debtor defaulted on payments amounting to Rs. 96,01,67,024/- as of September 30, 2002. The financial assistance was initially provided by Unit Trust of India (UTI) in the form of secured redeemable non-convertible debentures, which were later assigned to Phoenix ARC Private Limited. The corporate debtor was referred to BIFR under SICA, which was pending until June 19, 2008, and subsequently abated. The petitioner argued that the corporate debtor

…

## Facts

Unit Trust of India (UTI) provided financial assistance to Ajanta Paper and General Products Limited (Corporate Debtor) through secured redeemable non-convertible debentures. The Corporate Debtor defaulted on payments, leading UTI to issue a recall notice on October 10, 2002, demanding repayment of outstanding amounts as of September 30, 2002, which totaled Rs. 96,01,67,024/-. UTI assigned its rights to Phoenix ARC Private Limited on December 4, 2014. The Corporate Debtor was referred to the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1986 (SICA), with the reference pending until June 19, 2008, when it was abated. Phoenix ARC Private Limited filed a petition on November 6, 2018, seeking to

…

## Issues and analysis

### Issue 1: Whether the petition filed by Phoenix ARC …

**Ratio:** Section 18 of the Limitation Act, 1963 states that a fresh period of limitation shall be

…

**Reasoning:** The NCLT considered the financial documents submitted by the petitioner, which included

…

**Interpretation:** The interpretation of Section 18 of the Limitation Act, 1963, in the context of

…

**Application:** The NCLT applied the ratio to the facts of the case, noting that the corporate

…

## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Phoenix Arc…
- **Respondents:** Ajanta Paper and…

## Timeline

- **1998-02-16 — Sanction…**: UTI issued a sanction letter to the…
- **1998-05-04 — Letter of Modi…**: UTI issued a letter 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/nclt-chandigarh/ajanta-paper-and-general-products-limited-cp-no-4277-mb-ib-2018-628f03a7