# In the matter of Wizcraft International Entertainment Private Limited CP (IB)-3000-MB-2019

> NCLT judgment dated 2021-05-10. Citation: TCN-2021-NCLT-02170. The financial creditor, IDBI Bank Limited, filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 10 May 2021
- **Citation:** TCN-2021-NCLT-02170
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/wizcraft-international-entertainment-private-limited-cp-ib-3000-mb-2019-9b44ff11

## Summary

### Background

The financial creditor, IDBI Bank Limited, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Wizcraft International Entertainment Private Limited (Corporate Debtor) due to default in repayment of financial debt. The Corporate Debtor had provided corporate guarantees for loans granted to Great Indian Nautanki Company Private Limited (Borrower). The petition was filed after the borrower defaulted and the guarantees were invoked.

## Facts

IDBI Bank Limited (Petitioner/Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Wizcraft International Entertainment Private Limited (Corporate Debtor). The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, who had acted as a corporate guarantor for financial facilities extended to Great Indian Nautanki Company Private Limited (Borrower). The total principal amount of debt disbursed under the Facility Agreements was Rs. 56.70 Crores, with a total default amount of Rs. 60,39,87,991.41/- as of June 1, 2019. The Petitioner had granted various financial facilities to the Borrower, including term loans, cash credit limits, and bank guarantees, starting from

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## Issues and analysis

### Issue 1: Whether the limitation period for filing the Section 7 petition is extended by the Corporate …

**Ratio:** An acknowledgment of liability made in writing before the expiration of the prescribed

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**Reasoning:** The NCLT found that the Corporate Debtor's letter dated September 27, 2017, wherein it

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**Interpretation:** The court interpreted Section 18 of the Limitation Act, 1963, to mean that a

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**Application:** The Corporate Debtor's letter of September 27, 2017, explicitly stated that the

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## Parties

- **Judges:** SUCHITRA KANUPARTH…; V. Nallasen…; +2 more
- **Appellants:** IDBI Bank L…
- **Respondents:** Wizcraft Internati…
- **Advocates:** Siddharth…; Ruturaj B…; +1 more

## Timeline

- **June 24, 2009 — Initial Financial…**: IDBI Bank Limited sanctioned a term loan of Rs. 35 Crores, cash credit limit of Rs. 2…
- **June 26, 2009 — Corporate Guarantee…**: Wizcraft International Entertainment Private Limited issued an unconditional and…

## 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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