# In the matter of Arun Processors Pvt. Ltd. IBA-861-2020

> NCLT judgment dated 2021-07-29. Citation: TCN-2021-NCLT-01563. The case involves an application under the Insolvency and Bankruptcy Code (IBC). The applicant,…

- **Court:** NCLT
- **Order date:** 29 Jul 2021
- **Citation:** TCN-2021-NCLT-01563
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arun-processors-pvt-ltd-iba-861-2020-f298a56f

## Summary

### Background

The case involves an application under the Insolvency and Bankruptcy Code (IBC). The applicant, ASREC (INDIA) Ltd, filed an application, IBA/861/2020, against the respondent, Arun Processor Ltd. The applicant never appeared before the Adjudicating Authority on any of the five occasions. The respondent's counsel argued that the application was barred by limitation, as the transactions occurred between 1992 and 1993. The applicant obtained an Assignment Deed from the State Bank of Mysore dated 26.03.2007, and the application was based on this deed.

## Facts

ASREC (INDIA) Ltd filed an application (IBA/861/2020) against Arun Processor Ltd under Section 7 Rule 4 of IBC, 2016. The hearing was held on 2021-07-29. The applicant, ASREC (INDIA) Ltd, failed to appear before the Adjudicating Authority on five occasions. The respondent's counsel argued that the application was barred by limitation because the transactions occurred between 1992 and 1993. ASREC (INDIA) Ltd obtained an Assignment Deed from the State Bank of Mysore dated 2007-03-26, and the application was based on this deed. The relevance of the 1992-1993 transactions is that they form the basis of the debt that ASREC (INDIA) Ltd is trying to recover. The Assignment Deed of 2007-03-26 is relevant because it is the legal instrument by which ASREC (INDIA) Ltd acquired

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## Issues and analysis

### Issue 1: Whether the application IBA/861/2020 should be dismissed due to the applicant's absence and the …

**Ratio:** An application can be dismissed for non-prosecution if the applicant fails to appear

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**Reasoning:** The applicant failed to appear on multiple occasions. The respondent argued that the

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**Interpretation:** The legal issue revolves around the procedural requirements of pursuing a case

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**Application:** The applicant's absence and the respondent's argument regarding limitation led

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** ASREC (Indi…
- **Respondents:** Arun Proces…

## Timeline

- **1992-01-01 — Transactions…**: The transactions underlying the debt…
- **2007-03-26 — Assignmen…**: ASREC (INDIA) Ltd obtained an Assignment…

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