# In the matter of Eskay K 'N' IT (India) Ltd. C.P. (I.B) No. 420-NCLT-AHM-2018

> NCLT judgment dated 2020-02-17. Citation: TCN-2020-NCLT-01919. The case involves an application filed by Bank of India under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 17 Feb 2020
- **Citation:** TCN-2020-NCLT-01919
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/eskay-k-n-it-india-ltd-cp-ib-no-420-nclt-ahm-2018-74fe0f28

## Summary

### Background

The case involves an application filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Eskay K 'N' IT (India) Limited, seeking initiation of corporate insolvency resolution process due to default in payment of financial debt. The bank claimed that the corporate debtor defaulted on term loans and working capital fund-based limits. The corporate debtor raised objections, including that the application was time-barred and that the bank had suppressed material facts regarding actions taken under the RDDB Act, 1993.

## Facts

Bank of India, incorporated on 07.09.1906, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Eskay K 'N' IT (India) Limited, a company incorporated on 24th April, 1987. The bank claimed that Eskay K 'N' IT (India) Limited defaulted in payment towards principal and interest on term loans and working capital fund-based limits. The outstanding amount was Rs. 160,17,48,441.41 as on 31.07.2018. Eskay K 'N' IT (India) Limited raised objections, including that the application was time-barred and that the bank had suppressed material facts regarding actions taken under the RDDB Act, 1993. The bank submitted various documents, including sanction letters, inter-se consortium agreements, joint deeds of hypothecation, and balance sheets, to

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** The application is not barred by limitation if the corporate debtor has acknowledged the

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**Reasoning:** The Adjudicating Authority found that the corporate debtor had acknowledged the debt in

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**Interpretation:** The limitation period for filing an application under Section 7 of the IBC is

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**Application:** In this case, the corporate debtor acknowledged the debt in its balance sheet

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Bank of…
- **Respondents:** Eskay K' N' IT…; Eskay K 'N' IT…

## Timeline

- **1906-09-07 — Bank of India…**: Bank of India was…
- **1987-04-24 — Eskay K 'N' IT (India)…**: Eskay K 'N' IT (India)…

## Legal provisions

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

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