# 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-00938. 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-00938
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sai-krishnodaya-industries-private-limited-cp-ib-no-198-7-hdb-2019-6b5af44c

## 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 to the Corporate Debtor, which the Corporate Debtor failed to repay. The Corporate Debtor argued that the petition was barred by limitation and that the debt was related to a sister concern, M/s. Sainath Estates Private Limited. The NCLT is considering whether to admit the petition for Corporate Insolvency Resolution Process (CIRP).

## Facts

M/s. Sarwottam Ispat Limited (Financial Creditor) filed a petition against M/s. Sai Krishnodaya Industries Private Limited (Corporate Debtor) under Section 7 of the IBC, 2016. The Financial Creditor claimed to have disbursed a loan of Rs. 1,45,00,000/- to the Corporate Debtor in various tranches 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 dated 06.09.2016, stating that the loan amount 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 dishonored due to 'Insufficient Funds'. The

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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, in which the Corporate

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**Interpretation:** The acknowledgment of debt in the MOU is interpreted as a written confirmation

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**Application:** The MOU, signed on 29.11.2017, acknowledging the debt, restarts the limitation

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Sarwottam Ispat…
- **Respondents:** Sai Krishnodaya…
- **Advocates:** Sharad S…; D.V.A.S P…; +1 more

## Timeline

- **2013-03-24 — Loan Disbur…**: The Financial Creditor disbursed a loan of Rs. 1,45,00,000/- to the Corporate Debtor in…
- **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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