# In the matter of Impala Distillery & Brewery Ltd. CP(IB) No. 817-NCLT-MB-2019

> NCLT judgment dated 2020-01-10. Citation: TCN-2020-NCLT-02365. IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 10 Jan 2020
- **Citation:** TCN-2020-NCLT-02365
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/impala-distillery-brewery-ltd-cpib-no-817-nclt-mb-2019-5b7f0796

## Summary

### Background

IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Impala Distillery Limited for initiating Corporate Insolvency Resolution Process (CIRP). The claim amounted to ₹59,96,55,590 as of 01.10.2018. The Corporate Debtor contended that the application was barred by limitation, as the date of default was 31.12.2007, and the application was filed in 2019. The Applicant Bank had extended Rupee Term Loan I and Foreign Currency Loan to the Corporate Debtor, and various loan agreements were executed. The Corporate Debtor had requested restructuring of the debt, which was approved by the Applicant Bank. The loan accounts were declared NPA on 31.12.2007. The Applicant Bank issued Recall Notices and Statutory Notices under

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## Facts

IDBI Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Impala Distillery Limited, the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) for a claim of ₹59,96,55,590 as of 01.10.2018. The Applicant Bank had extended Rupee Term Loan I for ₹302 Lakh and Foreign Currency Loan for ₹198 Lakh to the Corporate Debtor. The Corporate Debtor issued a letter on 17.03.2001 requesting for restructuring of the debt amount, which the Applicant Bank agreed to on 30.04.2001. The loan accounts of the Corporate Debtor were declared NPA on 31.12.2007. The Applicant Bank issued a Recall Notice on 24.03.2012 and a Statutory Notice under Section 13(2) of the SARFAESI Act, 2002,

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 …

**Ratio:** The period of limitation for filing an application under Section 7 of the I&B Code is

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**Reasoning:** The court observed that the Corporate Debtor had been acknowledging the financial debt in

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**Interpretation:** The acknowledgment of debt by the Corporate Debtor in its Balance Sheet extends

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**Application:** In this case, the Corporate Debtor had been acknowledging the financial debt in

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## Parties

- **Judges:** RAJESH S…; Bhaskara Pantula…
- **Appellants:** IDBI Bank L…
- **Respondents:** Impala Distillery…

## Timeline

- **1997-04-04 — Sanction…**: Applicant Bank extended Rupee Term Loan I and Foreign Currency Loan vide Sanction Letter…
- **1997-06-03 — Loan Agre…**: Applicant and Corporate Debtor entered into Rupee Term Loan Agreement and Foreign…

## 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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