# In the matter of Raigarh Properties Private Limited C.P. (I.B) No. 432-KB-2019

> NCLT judgment dated 2020-02-27. Citation: TCN-2020-NCLT-01770. Asset Reconstruction Company (India) Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 27 Feb 2020
- **Citation:** TCN-2020-NCLT-01770
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raigarh-properties-private-limited-cp-ib-no-432-kb-2019-a551a345

## Summary

### Background

Asset Reconstruction Company (India) Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Raigarh Properties Private Limited, alleging default in payment of outstanding debt. The loan was originally granted by Union Bank of India to the corporate debtor against hypothecation and other securities in 2010. The financial creditor, Asset Reconstruction Company (India) Limited, stepped into the shoes of the assignor via a Deed of Assignment dated December 31, 2012. The financial creditor restructured the loan on March 21, 2013, but it was later recalled on February 3, 2015, due to the revocation of the settlement package. The corporate debtor requested a

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## Facts

In 2010, Union Bank of India granted a loan to Raigarh Properties Private Limited, secured by hypothecation. On December 31, 2012, Asset Reconstruction Company (India) Limited became the financial creditor through a Deed of Assignment. The loan was restructured on March 21, 2013. The settlement package was revoked on February 3, 2015, and the loan was recalled. Raigarh Properties Private Limited requested a reschedulement of the outstanding amount on July 23, 2015, referring to a term sheet dated March 21, 2013. Further correspondence occurred on August 14, 2015, and September 2, 2015. The financial creditor rejected the settlement proposal in 2015. A revised proposal was submitted by the corporate debtor on April 5, 2016, and rejected on April 7, 2016. A demand notice

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## Issues and analysis

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

**Ratio:** Section 18 of the Limitation Act, 1963, states that if, before the expiration of the

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**Reasoning:** The tribunal considered the submissions of both parties and analyzed the letters written

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**Interpretation:** The tribunal interpreted Section 18 of the Limitation Act, 1963, and Section

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**Application:** The tribunal applied the ratio to the specific facts of the case, noting that

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Asset Reconstructi…
- **Respondents:** Raigarh Properties…

## Timeline

- **2010-01-01 — Loan Gra…**: Union Bank of India granted a loan to…
- **2012-12-31 — Deed of Ass…**: Asset Reconstruction Company (India) Limited became the financial creditor through a Deed…

## 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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