# In the matter of Amzen Machines Pvt. Ltd. CP (IB)-2058(ND)-2019

> NCLT judgment dated 2021-03-11. Citation: TCN-2021-NCLT-02736. This case involves an application filed by Punjab National Bank (the Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 11 Mar 2021
- **Citation:** TCN-2021-NCLT-02736
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amzen-machines-pvt-ltd-cp-ib-2058nd-2019-98f89a35

## Summary

### Background

This case involves an application filed by Punjab National Bank (the Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Amzen Machines Pvt. Ltd. (the Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor had defaulted on a term loan of Rs. 200 Crore advanced on 17.03.2011. The Corporate Debtor opposed the application, primarily arguing that it was barred by limitation, as the account had been classified as NPA on 15.03.2016, and the application was filed on 09.08.2019, beyond the three-year limitation period.

## Facts

Punjab National Bank (PNB) advanced a term loan of Rs. 200 Crore to M/s. Amzen Machines Pvt. Ltd. on 17.03.2011. The loan was documented through a letter bearing Ref No. PNB/LCB dated 17.03.2011, and subsequently amended and supplemented. A common Loan Agreement was executed on 05.04.2014. The Corporate Debtor's account was declared as NPA on 15.03.2016. PNB sent a notice dated 10.05.2016 under Section 13(2) of the SARFAESI Act, 2002, demanding Rs 173,80,62,160/- outstanding as on 31.03.2016. The Corporate Debtor acknowledged its liability in a letter dated 10.07.2018. PNB filed an application under Section 7 of the IBC on 09.08.2019 to initiate CIRP. The Corporate Debtor argued that the application was barred by limitation, as it was filed more than three years after

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is barred by limitation under Section 238A …

**Ratio:** Section 238A of the IBC, 2016, makes the provisions of the Limitation Act, 1963,

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**Reasoning:** The NCLT considered the Corporate Debtor's argument that the application was filed beyond

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**Interpretation:** The interpretation of Section 238A of the IBC and Article 137 of the Limitation

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**Application:** The NCLT found that the Corporate Debtor's letter dated 10.07.2018

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## Parties

- **Judges:** Ch. Mohd Sharief…; Narender Kumar…
- **Appellants:** Punjab National…
- **Respondents:** M/s. Amzen…

## Timeline

- **2011-03-17 — Term Loan A…**: Punjab National Bank advanced a term loan of Rs. 200 Crore to M/s. Amzen Machines Pvt.…
- **2014-04-05 — Loan Agreement…**: A common Loan Agreement was executed between Punjab National Bank and M/s. Amzen Machines…

## 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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