# In the matter of Deegee Orchards Private Limited CP (IB) No.3402-MB-IV-2019

> NCLT judgment dated 2020-07-06. Citation: TCN-2020-NCLT-01061. UCO Bank filed a Company Petition under Section 7 of the Insolvency & Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 6 Jul 2020
- **Citation:** TCN-2020-NCLT-01061
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deegee-orchards-private-limited-cp-ib-no3402-mb-iv-2019-d2159632

## Summary

### Background

UCO Bank filed a Company Petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Deegee Orchards Private Limited, claiming default on debt. The Corporate Debtor is a private company incorporated in 1997. The Financial Creditor extended various credit facilities to the Corporate Debtor over several years. The petition was filed on 2019-09-11, claiming a default date of 2014-06-30. The Corporate Debtor requested restructuring of its debt and made a deposit for a one-time settlement (OTS), which was not accepted by the Financial Creditor.

## Facts

UCO Bank (Financial Creditor) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) against Deegee Orchards Private Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is a private company incorporated on 1997-05-29. The Financial Creditor extended various credit facilities to the Corporate Debtor, including cash credit, warehouse funding, and bank guarantees, through multiple sanction letters between 2005 and 2013. The Financial Creditor claimed a default date of 2014-06-30, with a total debt of ₹67,72,53,307.28. The petition was filed on 2019-09-11. The Corporate Debtor requested restructuring of its debt in 2017 and deposited ₹25.00 lakh for a one-time settlement (OTS), which was

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## Issues and analysis

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

**Ratio:** Article 137 of the Limitation Act, 1963, stipulates a limitation period of three years

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**Reasoning:** The Adjudicating Authority relied on several Supreme Court judgments, including InBK

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**Interpretation:** The Limitation Act applies to applications under Section 7 of the IBC, and the

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**Application:** In this case, the date of default was 2014-06-30, and the application was filed

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Appellants:** UCO B…
- **Respondents:** Deegee Orchards…

## Timeline

- **1997-05-29 — Incorporation of…**: Deegee Orchards Private…
- **2005-05-30 — Sanction…**: First sanction letter for cash credit of ₹10.35 crore, warehouse funding of ₹12.50 crore,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(2) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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