# In the matter of Sai Krishnodaya Industries Private limited CP (IB) No. 198-7-HDB-2019

> NCLT judgment dated 2019-10-17. Citation: TCN-2019-NCLT-00931. The case involves a Company Petition filed by M/s. Sarwottam Ispat Limited (Financial Creditor)…

- **Court:** NCLT
- **Order date:** 17 Oct 2019
- **Citation:** TCN-2019-NCLT-00931
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sai-krishnodaya-industries-private-limited-cp-ib-no-198-7-hdb-2019-3bfdac80

## Summary

### Background

The case involves a Company Petition filed by M/s. Sarwottam Ispat Limited (Financial Creditor) against M/s. Sai Krishnodaya Industries Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor claimed that it had disbursed a loan of Rs. 1,45,00,000/- to the Corporate Debtor in various tranches on 24.03.2013, with the total financial debt amounting to Rs. 1,55,90,480/- including interest. The Corporate Debtor's sister concern, M/s. Sainath Estates Private Limited, had issued a letter stating that the loan would be paid between October and December 2016. A Memorandum of Understanding (MOU) was executed on 29.11.2017, and M/s. Sainath Estates Private Limited issued two post-dated cheques, which were later

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## Facts

M/s. Sarwottam Ispat Limited (Financial Creditor) filed a Company Petition against M/s. Sai Krishnodaya Industries Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor disbursed a loan of Rs. 1,45,00,000/- to the Corporate Debtor on 24.03.2013. The total financial debt, including interest, amounted to Rs. 1,55,90,480/-. M/s. Sainath Estates Private Limited, a sister concern of the Corporate Debtor, issued a letter on 06.09.2016 stating that the loan would be repaid between October and December 2016. A Memorandum of Understanding (MOU) was executed on 29.11.2017. M/s. Sainath Estates Private Limited issued two post-dated cheques dated 31.03.2018 and 31.05.2018, which were subsequently dishonored due to

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## Issues and analysis

### Issue 1: Whether the petition is barred by …

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

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**Reasoning:** The Adjudicating Authority considered the MOU dated 29.11.2017, which acknowledged the

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**Interpretation:** The acknowledgment of debt through the MOU resets the limitation period, making

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**Application:** The Corporate Debtor's acknowledgment of the debt in the MOU dated 29.11.2017

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## Parties

- **Judges:** Shri. K. Anantha…; BINOD KUMAR…
- **Appellants:** Sarwottam Ispat…
- **Respondents:** Sai Krishnodaya…

## Timeline

- **2013-03-24 — Loan Disbur…**: M/s. Sarwottam Ispat Limited disbursed a loan of Rs. 1,45,00,000/- to M/s. Sai…
- **2016-09-06 — Letter from Sainath…**: M/s. Sainath Estates Private Limited issued a letter stating that the loan amount would…

## 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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