# In the matter of Medirad Tech Private Limited IB No. 1243-ND-2018

> NCLT judgment dated 2021-12-08. Citation: TCN-2021-NCLT-00236. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Dec 2021
- **Citation:** TCN-2021-NCLT-00236
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/medirad-tech-private-limited-ib-no-1243-nd-2018-a058e52d

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by India SME Asset Reconstruction Company Limited (Financial Creditor) against M/s Medirad Tech India Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor is an assignee of debt from IDBI Bank and Axis Bank. The Corporate Debtor had challenged the assignment deed and the validity of the application, claiming it was barred by limitation and that the petitioner was not a financial creditor. The matter was previously dismissed by the Adjudicating Authority on the ground of limitation, but the order was set aside by the NCLAT, which directed the Adjudicating Authority to admit the application. The Corporate

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## Facts

India SME Asset Reconstruction Company Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Medirad Tech India Limited. The Financial Creditor is an assignee of debt from IDBI Bank and Axis Bank, with assignment agreements dated 30.03.2011 and 12.12.2012. The details of the term loans assigned to the financial creditor by IDBI Bank and Axis Bank are as follows: IDBI loan of 100 lakhs on 23.04.2011, IDBI loan of 100 Lakhs on 06.08.2003, Axis Bank loan of 500 lakhs on 10.08.2004, Axis Bank loan of 200 lakhs on 02.07.2005, and Axis Bank loan of 700 Lakhs on 31.07.2006. The loans dated 10.08.2004 & 02.07.2005 merged into one single loan which enhanced by

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## Issues and analysis

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

**Ratio:** The principle of acknowledgment of debt under Section 18 of the Limitation Act states

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**Reasoning:** The Hon'ble NCLAT had already held that the admission of debt in the Balance Sheet of the

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**Interpretation:** Section 18 of the Limitation Act is interpreted to mean that any clear

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**Application:** The Corporate Debtor's balance sheets for the years 2015 and 2016 showed the

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** India SME Asset…
- **Respondents:** Medirad Tech…; M/s. MEDIRAD TECH…

## Timeline

- **2011-03-30 — Assignment Ag…**: IDBI Bank and Axis Bank assigned debt to India…
- **2012-12-12 — Assignment Ag…**: IDBI Bank and Axis Bank assigned debt to India…

## 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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