# In the matter of Raa International Limited C.P. (IB) No. 371-KB-2019

> NCLT judgment dated 2019-11-08. Citation: TCN-2019-NCLT-00646. Union Bank of India, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 8 Nov 2019
- **Citation:** TCN-2019-NCLT-00646
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raa-international-limited-cp-ib-no-371-kb-2019-b13a07f6

## Summary

### Background

Union Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Raa International Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The allegation was that the Corporate Debtor had defaulted in repayment of debt amounting to Rs. 11,30,000,00/-. The Corporate Debtor had availed various credit facilities from the Financial Creditor. The account of the Corporate Debtor was declared as NPA on 31.03.2015.

## Facts

Union Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Raa International Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed various credit facilities from the Financial Creditor. The Corporate Debtor defaulted in repayment of debt amounting to Rs. 11,21,47,924.18. The account of the Corporate Debtor was declared as NPA on 31.03.2015. The Financial Creditor sent a demand notice dated 02.06.2015 to the Corporate Debtor demanding repayment of the debt along with interest. The Corporate Debtor failed to repay the default amount due to the Financial Creditor despite demand. The application was filed on 06.03.2019, which

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## Issues and analysis

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

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

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**Reasoning:** The court considered the arguments on limitation and the applicability of Section 18 of

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**Interpretation:** The court interpreted the letter dated 13.01.2017 as an acknowledgement of debt

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**Application:** The court applied the ratio and reasoning to the facts of the case and held

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Union Bank of…
- **Respondents:** RAA International…

## Timeline

- **2014-04-07 — Loan Gra…**: Financial Creditor granted loan and various…
- **2015-03-31 — NPA Decla…**: Account of the Corporate…

## 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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