# In the matter of Statco Infraprojects Private Limited CP-354-IB-2018

> NCLT judgment dated 2020-01-10. Citation: TCN-2020-NCLT-02370. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 10 Jan 2020
- **Citation:** TCN-2020-NCLT-02370
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/statco-infraprojects-private-limited-cp-354-ib-2018-b28ad282

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by M/s. Narendra Properties Limited (Financial Creditor) against M/s. Statco Infra Projects Private Limited (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a debt of ₹92,75,000, including principal and interest. The Corporate Debtor contested the application, arguing that it was barred by limitation and alleging that the documents submitted by the Financial Creditor were forged. The Hon'ble High Court of Madras had previously set aside an earlier order admitting the application and remanded the proceedings back to the NCLT for fresh consideration.

## Facts

M/s. Narendra Properties Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Statco Infra Projects Private Limited (Corporate Debtor) claiming a debt of ₹92,75,000, which included a principal sum of ₹50,00,000 and interest of ₹42,75,000 calculated at 18% per annum as of 28.02.2018. The debt originated from a loan requested by the Corporate Debtor on 01.08.2011. The Corporate Debtor made some repayments, reducing the principal to ₹50,00,000. The Corporate Debtor issued a fresh promissory note for ₹50,00,000 on 01.04.2013. The Corporate Debtor also confirmed its outstanding balance in letters dated 04.04.2012, 26.04.2013, 31.03.2014, and 31.03.2015. The Corporate Debtor made interest payments until

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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 limitation period for filing an application under Section 7 of the IBC is three years

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**Reasoning:** The NCLT considered the Corporate Debtor's argument that the application was time-barred

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**Interpretation:** The acknowledgment of debt by the Corporate Debtor through balance confirmation

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**Application:** The balance confirmation letters dated 31.03.2014 and 31.03.2015, along with

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## Parties

- **Judges:** R. VARADH…; B. ANIL…
- **Appellants:** M/s. Narendra…
- **Respondents:** M/s. Statco Infra…

## Timeline

- **2011-08-01 — Loan Req…**: Corporate Debtor requested a loan of…
- **2013-05-01 — Cessation of Interest…**: Corporate Debtor stopped…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138 — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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