# In the matter of TAPL International Pvt. Ltd. CP (IB) No. 698-KB-2018

> NCLT judgment dated 2019-02-01. Citation: TCN-2019-NCLT-05065. State Bank of India, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 1 Feb 2019
- **Citation:** TCN-2019-NCLT-05065
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tapl-international-pvt-ltd-cp-ib-no-698-kb-2018-0903be58

## Summary

### Background

State Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against TAPL International Pvt. Ltd., the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor allegedly defaulted in paying a loan amount of Rs. 58,44,10,445/- (together with interest till 31.03.2018). The Corporate Debtor argued that the application was filed beyond the period of limitation and that the Financial Creditor had already filed a recovery proceeding in DRT, Kolkata, suppressing this material fact.

## Facts

State Bank of India (SBI) extended a loan of Rs. 34 crores to TAPL International Pvt. Ltd. (formerly known as Tulip Attire Private Ltd.) in 2012. The loan was secured by agreements including a loan agreement dated 28.07.2012 and hypothecation/pledge agreements. The loan was restructured on 26.08.2014. The account became a Non-Performing Asset (NPA) in 2016, leading SBI to issue a notice under Section 13(2) of the SARFAESI Act on 25.05.2016. TAPL International Pvt. Ltd. failed to repay the loan, resulting in SBI filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The total outstanding amount was Rs. 58,44,10,445/- as of 31.03.2018. TAPL International Pvt. Ltd. argued

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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:** Article 137 of the Law of Limitation prescribes a period of limitation of three years

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**Reasoning:** The court noted that the default occurred on 25.05.2016, the date on which the financial

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**Interpretation:** The court interpreted Article 137 of the Law of Limitation and the Apex Court's

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**Application:** The court found that the application was filed within three years from the date

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## Parties

- **Judges:** Madan B.…
- **Appellants:** State Bank of…
- **Respondents:** TAPL International…

## Timeline

- **2012-01-01 — Loan Disbur…**: Financial creditor granted and disbursed a loan…
- **2012-07-28 — Loan Agre…**: Agreement of loan for…

## 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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