# In the matter of Xylon Electrotechnic Pvt. Ltd. I.A. No.478 of 2018 & I.A> No. 711 of 2019 in-with C.P. (I.B) No. 379-7-NCLt-AHM-2018

> NCLT judgment dated 2020-05-28. Citation: TCN-2020-NCLT-01299. Invent Assets Securitisation and Reconstruction Private Limited filed an application under…

- **Court:** NCLT
- **Order date:** 28 May 2020
- **Citation:** TCN-2020-NCLT-01299
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/xylon-electrotechnic-pvt-ltd-ia-no478-of-2018-ia-no-711-of-2019-in-with-cp-ib-no-a4db0767

## Summary

### Background

Invent Assets Securitisation and Reconstruction Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Xylon Electrotechnic Pvt. Ltd. The application was based on the corporate debtor's inability to repay an outstanding amount of Rs. 54,49,40,510.35, including interest until 30.06.2018. Union Bank of India, the original financial creditor, had assigned its debt and securities to Invent Assets. The corporate debtor raised preliminary objections, arguing that the petition was barred by limitation, as the default occurred on 20.02.2010, and the petition was filed in July 2018, after a delay of more than eight years. The financial creditor argued that the

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## Facts

Invent Assets Securitisation and Reconstruction Private Limited (acting as trustee of Invent/1314/P6 Trust) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Xylon Electrotechnic Pvt. Ltd. The application was based on an outstanding debt of Rs. 54,49,40,510.35, including interest until 30.06.2018. Union Bank of India, the original financial creditor, had assigned its debt and securities to Invent Assets. The corporate debtor, Xylon Electrotechnic Pvt. Ltd., was a principal borrower with various credit facilities sanctioned by Union Bank of India, including cash credit, packing credit, and term loans. These facilities were restructured on 12.06.2009. The corporate debtor's

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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 principle of limitation dictates that legal proceedings must be initiated within a

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**Reasoning:** The Adjudicating Authority observed that the default occurred on 20.02.2010, and the

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**Interpretation:** The interpretation of the limitation period under the IBC is crucial. The court

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**Application:** The Adjudicating Authority applied the principle of limitation to the facts of

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Invent Assets…
- **Respondents:** Xylon Electrotechn…

## Timeline

- **2010-02-20 — Account Decla…**: The account of the Respondent Corporate Debtor was declared as Non-Performing Asset (NPA)…
- **2011-02-08 — Original Application…**: The Assignor Bank i.e. Union Bank of India filed the Original Application (OA) before the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(2) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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