# In the matter of J - Marks Exim (India) Private Limited CP(IB) No. 2176-MB-C-IV-2019

> NCLT judgment dated 2020-05-26. Citation: TCN-2020-NCLT-01324. Punjab National Bank initiated a Corporate Insolvency Resolution Process (CIRP) against J-Marks…

- **Court:** NCLT
- **Order date:** 26 May 2020
- **Citation:** TCN-2020-NCLT-01324
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-marks-exim-india-private-limited-cpib-no-2176-mb-c-iv-2019-317fdef2

## Summary

### Background

Punjab National Bank initiated a Corporate Insolvency Resolution Process (CIRP) against J-Marks Exim (India) Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, due to a default in payment of ₹1,45,42,74,724.16. The Corporate Debtor had been granted various credit facilities, including cash credit and term loans. The Corporate Debtor defaulted in payments from June 2013 and was declared a Non-Performing Asset (NPA) on 30.09.2013. The Financial Creditor initiated recovery actions under the SARFAESI Act, 2002, and sold some of the Corporate Debtor's properties. The Corporate Debtor argued that the petition was barred by limitation.

## Facts

Punjab National Bank (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against J-Marks Exim (India) Private Limited (Corporate Debtor) due to a default in payment of ₹1,45,42,74,724.16. The Corporate Debtor was incorporated on 14.03.2007. The Financial Creditor had sanctioned cash credit facilities and term loans to the Corporate Debtor. The Corporate Debtor defaulted in paying monthly installments from June 2013 and was declared a Non-Performing Asset (NPA) on 30.09.2013. The Financial Creditor initiated recovery actions under the SARFAESI Act, 2002, and sold some properties of the Corporate Debtor. The Corporate Debtor submitted balance and security confirmation letters on 16.04.2014. The Corporate Debtor also

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## Issues and analysis

### Issue 1: Whether the petition filed by Punjab National Bank under Section 7 of the IBC against J-Marks Exim …

**Ratio:** The Limitation Act, 1963, applies to applications filed under Section 7 of the IBC.

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**Reasoning:** The NCLT considered the Corporate Debtor's arguments regarding limitation based on the

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**Interpretation:** The court interpreted Section 18 of the Limitation Act in conjunction with

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**Application:** The NCLT applied the ratio to the facts, noting that the Corporate Debtor's

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Punjab National…
- **Respondents:** J-Marks Exim…
- **Advocates:** Savita Na…; Avinash Krishnan…; +1 more

## Timeline

- **2007-03-14 — Incorporation of…**: J-Marks Exim (India) Private…
- **2011-11-27 — Sanction of Credit…**: Credit facilities and term loans were sanctioned to the Corporate Debtor by the Financial…

## 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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