# In the matter of Nagaur Water Supply Company Private Limited C.P. (I.B)  No. 5-7-NCLT-AHM-2018

> NCLT judgment dated 2020-05-27. Citation: TCN-2020-NCLT-01314. The case involves an I.B. Petition filed by Phoenix ARC Private Limited, acting as a financial…

- **Court:** NCLT
- **Order date:** 27 May 2020
- **Citation:** TCN-2020-NCLT-01314
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nagaur-water-supply-company-private-limited-cp-ib-no-5-7-nclt-ahm-2018-5e47cd83

## Summary

### Background

The case involves an I.B. Petition filed by Phoenix ARC Private Limited, acting as a financial creditor and trustee of Phoenix Trust FY 14-9, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Nagaur Water Supply Company Private Limited, the corporate debtor. Phoenix ARC sought initiation of the Corporate Insolvency Resolution Process (CIRP) due to outstanding financial facilities availed by Nagaur Water Supply Company from L&T Infrastructure Finance Ltd., which were later assigned to Phoenix ARC. The corporate debtor raised objections, primarily concerning the limitation period for filing the petition and the authority of the petitioner to file the petition as a trustee. The NCLT considered the arguments and relevant documents submitted by both

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## Facts

Phoenix ARC Private Limited, acting as a trustee of Phoenix Trust FY 14-9, filed an I.B. Petition against Nagaur Water Supply Company Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Nagaur Water Supply Company had availed financial facilities from L&T Infrastructure Finance Ltd. amounting to Rs. 40,00,00,000.00, vide an agreement dated 14.06.2011. These financial assets were later assigned to Phoenix ARC via an assignment agreement dated 30.12.2013. The corporate debtor's account was declared a Non-Performing Asset (NPA) on 30.11.2013. The petition was filed on 15.12.2017. The corporate debtor argued that the petition was time-barred, as it was filed more than three years after the date of default (NPA declaration). The corporate debtor

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## Issues and analysis

### Issue 1: Whether the I.B. Petition filed by Phoenix ARC Private Limited is barred by limitation under …

**Ratio:** Article 137 of the Limitation Act applies to applications filed under Section 7 of the

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**Reasoning:** The NCLT relied on several Supreme Court decisions, including Vashdeo R. Bhojwani Vs.

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**Interpretation:** The interpretation of the Limitation Act, specifically Article 137, in the

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**Application:** In this case, the corporate debtor's account was declared an NPA on 30.11.2013,

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Phoenix ARC Pvt.…
- **Respondents:** Nagaur Water…

## Timeline

- **2011-06-14 — Financial Facility…**: Nagaur Water Supply Company availed financial facilities from L&T Infrastructure Finance…
- **2013-11-30 — NPA Decla…**: Nagaur Water Supply Company's account was…

## 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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