# 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-01957. The case involves a petition filed by Stressed Assets Stabilization Fund, the Financial…

- **Court:** NCLT
- **Order date:** 14 Aug 2019
- **Citation:** TCN-2019-NCLT-01957
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/galada-power-and-telecommunication-limited-cpibno-384-7-hdb-2018-796f7985

## Summary

### Background

The case involves a petition filed by Stressed Assets Stabilization Fund, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, against Galada Power And Telecommunication Limited, the Corporate Debtor. The Corporate Debtor had approached IDBI for credit facilities to finance its business activities. IDBI granted three credit facilities: a Rupee Term Loan Facility, a Guarantee Assistance Facility, and a Debenture Subscription Facility. These loans, along with underlying security interests, were transferred by IDBI to the Financial Creditor via a registered transfer deed. The Corporate Debtor acknowledged the dues until 2016. The Financial

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## Facts

Stressed Assets Stabilization Fund (Financial Creditor) filed a petition against Galada Power And Telecommunication Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had obtained three credit facilities from IDBI: a Rupee Term Loan Facility (Rs.8,00,00,000/- dated 28.06.1995), a Guarantee Assistance Facility (Rs.10,78,54,691/- dated 22.11.1996), and a Debenture Subscription Facility (Rs.5,00,00,000/- dated 24.03.1998). IDBI transferred these loans to the Financial Creditor via a registered transfer deed dated 30.09.2004. The Corporate Debtor acknowledged the dues until 2016. The Financial Creditor claimed an outstanding amount of Rs.727,68,77,776/- as of 01.04.2018. The Corporate Debtor raised objections,

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## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** The principle of limitation dictates that legal actions must be initiated within a

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**Reasoning:** The Adjudicating Authority observed that the Corporate Debtor had acknowledged the debt

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**Interpretation:** The interpretation of limitation laws considers the date of acknowledgement of

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**Application:** Since the Corporate Debtor acknowledged the debt in November 2017, the petition

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## Parties

- **Judges:** Shri. Κ. ΑΝΑΝΤHA…; BINOD KUMAR…
- **Appellants:** Stressed Assets…
- **Respondents:** Galada Power And…

## Timeline

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

## 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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