# In the matter of R S Buillwell Private Limited Company Petition no. (IB)-3005(ND)-2019

> NCLT judgment dated 2021-02-25. Citation: TCN-2021-NCLT-02912. Syndicate Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Feb 2021
- **Citation:** TCN-2021-NCLT-02912
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/r-s-buillwell-private-limited-company-petition-no-ib-3005nd-2019-70748952

## Summary

### Background

Syndicate Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against RS Builtwell Private Limited, referred to as the corporate debtor. The corporate debtor was incorporated on 24.06.2003 and its registered office is in New Delhi. The bank claimed a default based on the corporate debtor's account being declared a Non-Performing Asset (NPA) on 05.04.2008. The bank had sanctioned a short-term loan to the corporate debtor in 2006, which the corporate debtor defaulted on. The bank initiated recovery proceedings under the SARFAESI Act and filed an OA before the Debt Recovery Tribunal (DRT).

## Facts

Syndicate Bank (the applicant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against RS Builtwell Private Limited (the respondent/corporate debtor). The corporate debtor approached the applicant bank in 2006 for a term loan facility, and the bank sanctioned a short-term loan of Rs. 940 Lacs. The corporate debtor defaulted on repayment, and the account was declared a Non-Performing Asset (NPA) on 05.04.2008. The applicant bank initiated recovery proceedings under the SARFAESI Act, 2002, and filed an O.A. No. 461 of 2015 before the Debt Recovery Tribunal (DRT)-I Delhi on 19.10.2015. The DRT directed the corporate debtor to pay Rs. 14,68,17,342.58/- along with interest. The

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is barred by …

**Ratio:** The date of default for computing the period of limitation under Section 7 of the IBC is

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**Reasoning:** The NCLT relied on the decision of the NCLAT in Ishrat Ali Vs. Cosmos Cooperative Bank

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** In this case, the corporate debtor's account was declared NPA on 05.04.2008.

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; V.K. SUB…
- **Appellants:** Syndicate…
- **Respondents:** RS Builtwell…

## Timeline

- **2003-06-24 — Incorporation of…**: RS Builtwell Private…
- **2006-01-01 — Term Loan F…**: Corporate Debtor approached the…

## 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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