# In the matter of Patna Highway Projects Limited C.P. No. IB-1504(PB)-2019

> NCLT judgment dated 2020-01-03. Citation: TCN-2020-NCLT-02530. The 'Financial Creditor' Corporation Bank filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 3 Jan 2020
- **Citation:** TCN-2020-NCLT-02530
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/patna-highway-projects-limited-cp-no-ib-1504pb-2019-023a760f

## Summary

### Background

The 'Financial Creditor' Corporation Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Patna Highway Projects Limited. The Corporate Debtor is a company registered under the Companies Act, 1956, incorporated on 22.12.2009. The Financial Creditor claimed a default of Rs. 199,73,97,499/- as of 30.04.2019, including future and pendenlite interest. The Corporate Debtor's account was classified as NPA on 28.05.2015. The Corporate Debtor opposed the admission of the petition, raising arguments regarding limitation, the authority of the person signing the petition, and the completeness of the petition.

## Facts

Corporation Bank, the 'Financial Creditor', filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Patna Highway Projects Limited, the 'Corporate Debtor'. The Corporate Debtor was incorporated on 22.12.2009 under the Companies Act, 1956. The Financial Creditor claimed a default of Rs. 199,73,97,499/- as of 30.04.2019, including future and pendenlite interest at 1%. The Corporate Debtor's account was classified as Non-Performing Asset (NPA) on 28.05.2015. The total amount sanctioned, granted, and restructured in the form of a Term Loan starting from 01.09.2010 to 25.03.2015 is claimed to be INR 192,55,00,000/-. The Corporate Debtor opposed the petition, arguing it was barred by

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## Issues and analysis

### Issue 1: Whether the present petition …

**Ratio:** The limitation period for filing an application under Section 7 of the IBC is three years

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**Reasoning:** The court considered the date of default as 28.05.2015, as argued by the Corporate

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**Interpretation:** The court interpreted the relevant provisions of the IBC and the restructuring

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**Application:** The court applied the ratio to the facts of the case, considering the

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Corporatio…
- **Respondents:** M/s. Patna…
- **Advocates:** Ekta Chou…; Kunal Ch…; +7 more

## Timeline

- **2009-12-22 — Incorporation of…**: M/s. Patna Highway Projects Limited was…
- **2010-09-01 — Sanction…**: The Petitioner-Bank sanctioned and granted…

## 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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