# In the matter of Bilpower Limited C.P. No. 3844-IBC-MB-2019

> NCLT judgment dated 2021-09-07. Citation: TCN-2021-NCLT-01173. State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 7 Sept 2021
- **Citation:** TCN-2021-NCLT-01173
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bilpower-limited-cp-no-3844-ibc-mb-2019-060d2f99

## Summary

### Background

State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Bilpower Limited, citing an unresolved financial debt of Rs. 4,651,564,453.53. The Corporate Debtor had approached the Financial Creditor for financial facilities, leading to multiple loan agreements and sanction letters over several years. The Financial Creditor also issued a legal notice and initiated proceedings under the SARFAESI Act and before the Debt Recovery Tribunal.

## Facts

State Bank of India (Financial Creditor) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Bilpower Limited (Corporate Debtor) due to an outstanding financial debt of Rs. 4,651,564,453.53. The Corporate Debtor had approached the Financial Creditor for financial facilities, resulting in multiple loan agreements from 2005 to 2013. The Corporate Debtor issued guarantees and executed hypothecation agreements. The Financial Creditor issued a legal notice on January 17, 2014, and a notice under Section 13(2) of the SARFAESI Act on February 14, 2014. An Original Application was filed before the Debt Recovery Tribunal. The Debt Recovery Tribunal passed orders in 2014, 2015, and 2016. The Corporate Debtor's balance sheets for the years ending

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## Issues and analysis

### Issue 1: Whether the above Company Petition is barred by …

**Ratio:** The acknowledgment of debt in the balance sheets of the Corporate Debtor, as required by

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**Reasoning:** The NCLT relied on the Supreme Court's judgment in Asset Reconstruction Company (India)

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**Interpretation:** Section 18 of the Limitation Act provides that acknowledgment of debt made

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**Application:** The Corporate Debtor's balance sheets for the years ending March 31, 2015, and

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** State Bank of…
- **Respondents:** Bilpower L…
- **Advocates:** Rohit G…; Abdullah Q…; +1 more

## Timeline

- **2005-10-14 — Loan Agre…**: Corporate Debtor approached the Applicant and requested to grant Financial Facilities.…
- **2006-11-06 — Loan Agre…**: Applicant had entered into a Agreement of Loan…

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