# In the matter of Tip Top Furniture Pvt. Ltd. CP(IB)-29-KOB-2021

> NCLT judgment dated 2021-12-21. Citation: TCN-2021-NCLT-00122. The case involves an application filed by IDBI Bank Limited ('Financial Creditor') under…

- **Court:** NCLT
- **Order date:** 21 Dec 2021
- **Citation:** TCN-2021-NCLT-00122
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tip-top-furniture-pvt-ltd-cpib-29-kob-2021-18589900

## Summary

### Background

The case involves an application filed by IDBI Bank Limited ('Financial Creditor') under Section 7 of the Insolvency and Bankruptcy Code, 2016 ('Code') against M/s Tip Top Furniture Private Limited ('Corporate Debtor') for initiating Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a default of Rs. 11.68 Crores as of 01.04.2021. The Corporate Debtor argued that the application was barred by limitation and raised objections regarding the authority of the applicant and the correctness of the claimed amount.

## Facts

IDBI Bank Limited ('Financial Creditor') filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Tip Top Furniture Private Limited ('Corporate Debtor'). The Financial Creditor claimed that the Corporate Debtor defaulted on a loan facility. The Corporate Debtor availed a loan facility from the Financial Creditor, which was sanctioned on 18.03.2015 and renewed on 02.03.2017. The Corporate Debtor defaulted in repayment, leading to the loan account being classified as NPA with effect from 01.05.2018. The Financial Creditor issued a letter on 27.02.2019, calling upon the Corporate Debtor to settle the outstanding amount of Rs. 950.10 Lakhs. A demand notice was also issued under Section 13(2) of the SARFAESI Act, 2002, on 12.04.2019. The

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## Issues and analysis

### Issue 1: Whether the application …

**Ratio:** Section 238A of the IBC Act, 2016 incorporates the Limitation Act, 1963, to proceedings

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**Reasoning:** The NCLT found that the Financial Creditor had the proper authority to file the

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**Interpretation:** The interpretation of Section 238 of the Code provides that the provisions of

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**Application:** The NCLT rejected the Corporate Debtor's contention regarding maintainability,

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## Parties

- **Judges:** Ashok Kumar…; Anil Ku…
- **Respondents:** M/s Tip Top…

## Timeline

- **2015-03-18 — Loan San…**: Loan facility sanctioned to the…
- **2017-03-02 — Loan Ren…**: Loan facility renewed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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