# In the matter of Eastern Silk Industries Limited C.P (IB) No. 588-KB-2020

> Read the full IBC case summary for In the matter of Eastern Silk Industries Limited C.P (IB) No. 588-KB-2020. NCLT judgment dated 2022-06-10. Citation:…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-04669
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/eastern-silk-industries-limited-cp-ib-no-588-kb-2020-5e38c23b

## Summary

### Background

The financial creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against the corporate debtor due to its failure to repay financial debt.

## Facts

Export-import Bank of India, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Eastern Silk Industries Limited, the corporate debtor. The application detailed the financial debt and supporting documents. The total amount claimed as of February 10, 2020, was Rs. 690,665,379.47.

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## Issues and analysis

### Issue 1: Whether the Petition under Section 7 of the…

**Ratio:** The Supreme Court in Laxmi Pat Surana v. Union Bank of India & Anr. held that Section 18…

**Reasoning:** The court noted that the transaction was purely financial, and the corporate debtor's…

**Interpretation:** The court interpreted **Section 18** of the Limitation Act to mean that each…

**Application:** Given the corporate debtor's continuous acknowledgments of debt through various…

## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Advocates:** For Financial…; Joy Saha, S…; +5 more

## Timeline

- **March, 2003 — First Term Loan…**: Export-import Bank of India sanctioned an EOU term loan of USD 3.12 million to Eastern…
- **March 2, 2009 — Second Term Loan…**: Financial Creditor sanctioned another term loan of Rs. 30 crores for…

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