# In the matter of Galada Power and Telecommunication Limited CP(IB)No. 384-7-HDB-2018

> NCLT judgment dated 2019-08-14. Citation: TCN-2019-NCLT-01960. The case involves a petition filed by Stressed Assets Stabilization Fund (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 14 Aug 2019
- **Citation:** TCN-2019-NCLT-01960
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/galada-power-and-telecommunication-limited-cpibno-384-7-hdb-2018-665b36c2

## Summary

### Background

The case involves a petition filed by Stressed Assets Stabilization Fund (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Galada Power And Telecommunication Limited (Corporate Debtor). The Financial Creditor claims that the Corporate Debtor defaulted on credit facilities granted by IDBI, which were later transferred to the Financial Creditor. The Corporate Debtor raised objections, including limitation and the amount of debt.

## Facts

The Stressed Assets Stabilization Fund filed a petition against Galada Power And Telecommunication Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. IDBI granted three credit facilities to Galada Power And Telecommunication Limited: a Rupee Term Loan of Rs. 8,00,00,000 on June 28, 1995, a Guarantee Assistance Facility of Rs. 10,78,54,691 on November 22, 1996, and a Debenture Subscription Facility of Rs. 5,00,00,000 on March 24, 1998. These loans, along with underlying security interests, were transferred from IDBI to the Financial Creditor on September 30, 2004. The Corporate Debtor acknowledged the dues until 2016. The Financial Creditor claimed an outstanding amount of Rs. 727,68,77,776 as of April 1, 2018. The Corporate Debtor raised objections,

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## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** A petition under Section 7 of the IBC is not barred by limitation if the corporate debtor

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**Reasoning:** The court observed that the Corporate Debtor had acknowledged the debt from time to time,

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**Interpretation:** The court interpreted the provisions of the Limitation Act in conjunction with

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**Application:** The court applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** Shri. K. Anantha…; BINOD KUMAR…
- **Appellants:** Stressed Assets…
- **Respondents:** Galada Power And…
- **Advocates:** Mr.V.V.S.…; Dr.S.V.Rama…; +1 more

## Timeline

- **1995-06-28 — Rupee Term Loan…**: IDBI granted a Rupee Term Loan of Rs.…
- **1996-11-22 — Guarantee Assistance…**: IDBI granted a Guarantee Assistance Facility of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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