# In the matter of The Jeypore Sugar Company Limited CP-1307-IB-2018

> NCLT judgment dated 2019-02-25. Citation: TCN-2019-NCLT-04698. The case involves a petition filed by IDBI Bank Limited, the Financial Creditor, under Section…

- **Court:** NCLT
- **Order date:** 25 Feb 2019
- **Citation:** TCN-2019-NCLT-04698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/the-jeypore-sugar-company-limited-cp-1307-ib-2018-9deac1b5

## Summary

### Background

The case involves a petition filed by IDBI Bank Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC) for initiating the Corporate Insolvency Resolution Process (CIRP) against The Jeypore Sugar Company Limited, the Corporate Debtor. The petition was filed due to the Corporate Debtor's default in repaying loans amounting to ₹183,75,51,582 as of 01.10.2018. The Corporate Debtor argued that the petition was filed after the limitation period of three years from the date of default, making the debt claim barred by limitation.

## Facts

IDBI Bank Limited, the Financial Creditor, extended credit facilities to The Jeypore Sugar Company Limited, the Corporate Debtor, amounting to ₹165.37 Crores. The credit facilities included Working Capital Loan, Rupee Term Loan-I, Rupee Term Loan-II, Rupee Term Loan-III, Funded Interest Term Loan, and Term Loan. The Corporate Debtor defaulted in repaying the loans, leading to the classification of the loan amount as NPA on 30.06.2015. The Financial Creditor issued a recall notice on 13.11.2015. The Corporate Debtor acknowledged the debt in its annual report dated 24.08.2017 and through a letter dated 08.01.2016 proposing an OTS. The Financial Creditor filed a petition under Section 7 of the IBC on 24.10.2018. The Corporate Debtor argued that the petition was filed

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the IBC is barred by …

**Ratio:** The Limitation Act is applicable to applications filed under Sections 7 and 9 of the IBC.

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**Reasoning:** The court considered the Corporate Debtor's argument that the petition was filed after

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**Interpretation:** The court interpreted Section 18 of the Limitation Act to mean that an

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**Application:** The court applied the ratio and reasoning to the facts of the case, noting that

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** IDBI Bank L…
- **Respondents:** The Jeypore Sugar…

## Timeline

- **2005-09-26 — Initial Credit…**: Credit facilities of Rs. 30.00 Crore were…
- **2005-12-15 — Security Documents…**: The Corporate Debtor executed various Security Documents for the credit facilities…

## 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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