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

> NCLT judgment dated 2019-10-21. Citation: TCN-2019-NCLT-00901. The case involves a petition filed by the State Bank of India (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 21 Oct 2019
- **Citation:** TCN-2019-NCLT-00901
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/icsa-india-limited-cp-ibno-132-7-hdb-2019-990f1b28

## Summary

### Background

The case involves a petition filed by the State Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against ICSA (INDIA) LIMITED (Corporate Debtor) for failing to repay outstanding loan amounts. The Corporate Debtor availed fund-based financial assistance in the form of bank guarantees from the Financial Creditor through various sanction letters. To secure the repayment, the Corporate Debtor executed various documents, including hypothecation agreements, pledge agreements, and deeds of guarantee. The Corporate Debtor's loan account was classified as a Non-Performing Asset (NPA) due to the failed restructuring. The Financial Creditor had also filed an Original Application against the Corporate Debtor before the Debt Recovery

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## Facts

The State Bank of India (SBI) filed a petition against ICSA (INDIA) LIMITED under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. ICSA had availed financial assistance from SBI in the form of bank guarantees, secured through various agreements. ICSA's loan account was classified as a Non-Performing Asset (NPA) due to its failure to repay the outstanding amounts. SBI had also filed an Original Application against ICSA before the Debt Recovery Tribunal (DRT) for recovery of the dues. ICSA contended that the petition was barred by limitation and that there was a stay order from the High Court. ICSA argued that the banks refused to issue bank guarantees, leading to financial distress and cancellation of contracts. ICSA had also filed an application with the

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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 disclosing the debt that it is due and liable to the

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**Interpretation:** The court interpreted Section 18(1) of the Limitation Act, 1963, to mean that a

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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…; Dr.Binod Kumar…
- **Appellants:** M/s. State Bank…
- **Respondents:** M/S. ICSA (INDIA)…

## Timeline

- **1994-02-01 — Incorporation of…**: Respondent is a Public Limited Company incorporated under the provisions of Companies…
- **2011-10-05 — Account Classified as…**: Loan Account of the Respondent/CD was classified as Non-Performing Asset by the…

## 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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