# In the matter of Kew Precision Parts Pvt. Ltd. (IB) 672 (ND)-2019

> NCLT judgment dated 2019-09-06. Citation: TCN-2019-NCLT-01537. Kotak Mahindra Bank Ltd. filed a petition under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 6 Sept 2019
- **Citation:** TCN-2019-NCLT-01537
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kew-precision-parts-pvt-ltd-ib-672-nd-2019-12274493

## Summary

### Background

Kotak Mahindra Bank Ltd. filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Kew Precision Parts Pvt. Ltd. The financial creditor and the corporate debtor had a longstanding relationship of financial transactions, with defaults occurring in 2015. The corporate debtor's account was declared NPA on 2015-09-30. The financial creditor issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 2015-11-19. An O.A. No. 576 of 2016 was filed in DRT-I, Delhi, for recovery against the corporate debtor, where the applicant bank was granted an interim relief on 2016-10-03, restraining the corporate debtor from dealing with hypothecated goods. A judgement dated 2017-04-10

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## Facts

Kotak Mahindra Bank Ltd. filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Kew Precision Parts Pvt. Ltd. The financial creditor and the corporate debtor had a longstanding relationship of financial transactions, with defaults occurring in 2015. The corporate debtor's account was declared NPA on 2015-09-30. The financial creditor issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 2015-11-19. An O.A. No. 576 of 2016 was filed in DRT-I, Delhi, for recovery against the corporate debtor, where the applicant bank was granted an interim relief on 2016-10-03, restraining the corporate debtor from dealing with hypothecated goods. A judgement dated 2017-04-10

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## Issues and analysis

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

**Ratio:** Article 62 of the Limitation Act provides the

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**Reasoning:** The court considered the financial creditor's argument that the corporate debtor's

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**Interpretation:** The court interpreted the 'One Time Settlement' offer as an acknowledgment of

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**Application:** The court applied the principle that an acknowledgment of debt restarts the

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## Parties

- **Judges:** Ina Mal…; SUMITA PURK…; +1 more
- **Appellants:** Kotak Mahindra…
- **Respondents:** Kew Precision…

## Timeline

- **2015-09-30 — Account decla…**: The account of the Corporate Debtor was declared NPA in accordance with the RBI…
- **2015-11-19 — Notice under SARFAESI…**: The Financial Creditor issued notice under…

## 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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