# In the matter of Gangotri Enterprises Ltd. CP No.(IB)262-ALD-2019

> NCLT judgment dated 2021-12-06. Citation: TCN-2021-NCLT-00258. Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 6 Dec 2021
- **Citation:** TCN-2021-NCLT-00258
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gangotri-enterprises-ltd-cp-noib262-ald-2019-e9f6aeab

## Summary

### Background

Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/S Gangotri Enterprises LTD., seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor, Bank of India, had sanctioned credit facilities to the Corporate Debtor starting in 2007, which included cash credit and bank guarantees. These facilities were modified and revised over time, with agreements executed between the parties. The Corporate Debtor's account was classified as NPA on 30.06.2015 with retrospective effect from 30.09.2013. Several revival letters and acknowledgments of debt were signed by the Corporate Debtor and guarantors over the years.

## Facts

Bank of India sanctioned credit facilities to M/S Gangotri Enterprises LTD. starting in 2007, including cash credit and bank guarantees. These facilities were modified over time. The Corporate Debtor's account was classified as NPA on 30.06.2015 with retrospective effect from 30.09.2013. Several revival letters and acknowledgments of debt were signed by the Corporate Debtor and guarantors. One revival letter was signed on 21.03.2007, another on 17.01.2008, and others on 26.05.2009 and 20.10.2010. A letter dated 12.03.2012 acknowledged the debt and validity of documents. The Corporate Debtor requested restructuring under CDR mechanism on 09.12.2013, and a LOA was executed on 26.09.2013. A Board meeting on 13.12.2013 noted the restructuring and authorized the execution

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 is barred …

**Ratio:** Section 18 of the Limitation Act, 1963 provides that where, before the expiration of the

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**Reasoning:** The court considered the various acknowledgments of debt provided by the Corporate

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**Interpretation:** The court interpreted Section 18 of the Limitation Act to mean that any valid

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**Application:** The court applied the ratio to the facts of the case and found that the various

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Appellants:** Bank of…
- **Respondents:** M/S GANGOTRI…
- **Advocates:** Prabodh Kumar…; Rahul Ag…

## Timeline

- **2007-01-01 — Credit Facilities…**: Bank of India sanctioned credit facilities to M/S Gangotri Enterprises LTD. starting in…
- **2015-06-30 — Account Classified as…**: The Corporate Debtor's account was classified as NPA on 30.06.2015 with retrospective…

## 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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