# In the matter of LV Global Pvt. Ltd. IB-825-ND-2019

> NCLT judgment dated 2020-02-28. Citation: TCN-2020-NCLT-01751. M/s Aadhar Infraholding Limited, the financial creditor, filed a petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 28 Feb 2020
- **Citation:** TCN-2020-NCLT-01751
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lv-global-pvt-ltd-ib-825-nd-2019-0147b889

## Summary

### Background

M/s Aadhar Infraholding Limited, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s L V Global Private Limited, the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP) due to their inability to liquidate a claim of Rs. 5,87,00,000. The corporate debtor allegedly defaulted on loan facilities granted by the financial creditor, evidenced by banking transactions. The corporate debtor denied liability, arguing that the claim was barred by limitation and that there was no loan agreement. The financial creditor recalled the loan via letter dated 07.02.2019, demanding Rs. 10,35,74,099/-.

## Facts

M/s Aadhar Infraholding Limited (Financial Creditor) filed a petition against M/s L V Global Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The claim was for Rs. 5,87,00,000/-. The Financial Creditor had granted various loan facilities to the Corporate Debtor, evidenced by banking transactions between 2014 and 2015. The Corporate Debtor's balance sheet for FY 2016-17 reflected a debt of Rs. 5.87 Crores to the Financial Creditor as a short-term borrowing. The Financial Creditor recalled the loan on 07.02.2019, demanding Rs. 10,35,74,099/-. The Corporate Debtor denied liability on 21.02.2019. The Corporate Debtor argued that the claim was barred by limitation and that there was no loan agreement.

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## Issues and analysis

### Issue 1: Whether the claim of the Financial …

**Ratio:** Limitation commences from the date of demand when the term of the loan is not fixed and

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**Reasoning:** The court relied on the judgment passed by the Hon'ble Delhi High Court in Virendar Kumar

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**Interpretation:** The court interpreted the law on limitation to mean that for loans payable on

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**Application:** The court applied the principle that the limitation period starts from the date

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## Parties

- **Judges:** Ina Mal…; L. N. G…
- **Appellants:** M/s Aadhar…
- **Respondents:** M/s LV Global…
- **Advocates:** P.V K…; Anivban Bhattachar…; +2 more

## Timeline

- **2014-07-22 — Loan Tra…**: Axis Bank transferred Rs.…
- **2014-09-03 — Loan Tra…**: Axis Bank transferred Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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