# In the matter of Nirman Industries Limited C.P. No. (IB) 613-7-NCLT-AHM-2018

> NCLT judgment dated 2020-12-08. Citation: TCN-2020-NCLT-00135. The case involves a Company Petition No. CP (IB) 613/7/NCLT/AHM/2019 filed on 09.08.2019 by…

- **Court:** NCLT
- **Order date:** 8 Dec 2020
- **Citation:** TCN-2020-NCLT-00135
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nirman-industries-limited-cp-no-ib-613-7-nclt-ahm-2018-9fe7980c

## Summary

### Background

The case involves a Company Petition No. CP (IB) 613/7/NCLT/AHM/2019 filed on 09.08.2019 by State Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Nirman Industries Ltd. The claim amount was Rs. 59.10 crores. The application was initially placed for consideration on 22.10.2019 before a Divisional Bench (Bench 1).

## Facts

State Bank of India filed a Company Petition No. CP (IB) 613/7/NCLT/AHM/2019 on 09.08.2019 under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Nirman Industries Ltd, seeking to initiate CIRP. The claim amount was Rs. 59.10 crores. The respondent company, Nirman Industries Ltd, was declared a Non-Performing Asset (NPA) on 16.04.2015. The petition was initially considered on 22.10.2019 by a Divisional Bench, which rejected the application based on limitation. The Hon'ble Member (Technical) deferred the decision, and the matter was referred to another bench. The Adjudicating Authority concurred with the initial view that the application was barred by limitation, considering the date of NPA declaration and the filing date of the petition, referring to

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## Issues and analysis

### Issue 1: Whether the application filed by State Bank of India under Section 7 of the Insolvency and …

**Ratio:** The principle of limitation dictates that legal proceedings must be initiated within a

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**Reasoning:** The Adjudicating Authority reasoned that the date of default, which triggers the

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

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**Application:** Applying the ratio and reasoning to the facts, the court found that the

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## Parties

- **Judges:** Manorama…; Harihar Prakash…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** Nirman Industries…

## Timeline

- **2015-04-16 — NPA Decla…**: Nirman Industries Ltd was declared…
- **2015-07-10 — Recall N…**: Recall notice issued to…

## 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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