# In the matter of ICSA (India) Limited CP (IB)No. 132-7-HDB-2019

> NCLT judgment dated 2019-10-21. Citation: TCN-2019-NCLT-00904. The case pertains to an application filed by M/s. State Bank of India (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 21 Oct 2019
- **Citation:** TCN-2019-NCLT-00904
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/icsa-india-limited-cp-ibno-132-7-hdb-2019-98a695bf

## Summary

### Background

The case pertains to an application filed by M/s. State Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/S. ICSA (INDIA) LIMITED (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on loan repayments. The Corporate Debtor contested the application, citing reasons such as the petition being barred by limitation and the existence of an interim stay order from the High Court of Telangana. The Corporate Debtor also argued that the financial distress was due to external factors and the non-support of the banks. The Financial Creditor argued that the Corporate Debtor had acknowledged the debt in its audited financial statements, thus negating the limitation argument. The Financial

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## Facts

M/s. State Bank of India (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/S. ICSA (INDIA) LIMITED (Corporate Debtor) for defaulting on loan repayments. The Financial Creditor claimed a total disbursed amount of Rs. 206,02,00,000/- with an amount in default of Rs. 448,46,42,171/- plus a BG liability of Rs. 3.44 Crores. The Corporate Debtor availed Fund Based financial assistance in the form of Bank Guarantees from the Petitioner/FC through various Sanction Letters and executed various documents such as Hypothecation Agreements, Pledge Agreements, Deed of Guarantees and Deposit of Title Deeds. The loan account was classified as Non-Performing Asset (NPA) w.e.f. 05.10.2011. The Petitioner/FC had filed an Original

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## Issues and analysis

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

**Ratio:** Section 18(1) of the Limitation Act, 1963 provides that a fresh period of limitation

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**Reasoning:** The Corporate Debtor had been reflecting the impugned Financial Debt as due and payable

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**Interpretation:** The acknowledgement of debt in the audited financial statements constitutes a

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**Application:** Since the Corporate Debtor acknowledged the debt in its audited balance sheet

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## Parties

- **Judges:** Shri. K. Anantha…; BINOD KUMAR…
- **Appellants:** M/s. State Bank…
- **Respondents:** ICSA (INDIA)…; M/S. ICSA (INDIA)…

## Timeline

- **2011-10-05 — Loan Account Classified…**: The loan account of the Respondent/CD was classified as Non-Performing Asset by the…
- **2018-01-18 — Corporate Debtor…**: The Petitioner declared the…

## 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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