# In the matter of Aaj Ka Anand Papers Private Limited CP (IB) No.760-MB-2021

> NCLT judgment dated 2022-03-31. Citation: TCN-2022-NCLT-03447. State Bank of India filed an application under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Mar 2022
- **Citation:** TCN-2022-NCLT-03447
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aaj-ka-anand-papers-private-limited-cp-ib-no760-mb-2021-537c9898

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, against M/s Aaj Ka Anand Papers Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a total default of Rs. 248,46,99,997.23/-. The Corporate Debtor denied the claim, asserting that the application was barred by limitation and that no demand notice was issued. The Financial Creditor submitted that the Corporate Debtor had admitted its liability in a letter dated 29.05.2019 and in its Audited Financial Statements.

## Facts

State Bank of India (SBI), the Financial Creditor, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against M/s Aaj Ka Anand Papers Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). SBI claimed a total default of Rs. 248,46,99,997.23/-, with the date of default being 28.06.2014 and the date of NPA classification being 27.09.2014. SBI had sanctioned various credit facilities to the Corporate Debtor, including Cash Credit Loan, Working Capital Term Loan, and Funded Interest Term Loan. A Working Capital Consortium Agreement was executed on 30.10.2007 between Axis Bank and Barclays Bank PLC, which led to a Master Joint Lenders Forum (JLF) Agreement dated 25.06.2014. The Corporate

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is barred by limitation under the …

**Ratio:** Section 18 of the Limitation Act, 1963 states that where, before the expiration of the

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**Reasoning:** The NCLT relied on the judgment of Justice Indira Banerjee in Dena Bank (now Bank of

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**Interpretation:** The acknowledgment of debt by the Corporate Debtor in its letter and financial

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**Application:** The Corporate Debtor's letter dated 29.05.2019, admitting its willingness to

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## Parties

- **Judges:** RAJESH S…; KISHORE VEMULAPALL…
- **Appellants:** State Bank of…
- **Respondents:** M/s Aaj Ka Anand…

## Timeline

- **2014-06-28 — Date of D…**: The Corporate Debtor first…
- **2014-09-27 — NPA Classif…**: The account of the Corporate Debtor was classified as a Non-Performing Asset (NPA) on…

## 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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