# In the matter of Ace Engineering (India) Pvt. Ltd. IA No. 312-2023 And CP (IB) No. 54-Chd-J&K-2019

> NCLT judgment dated 2023-03-06. Citation: TCN-2023-NCLT-04307. The Jammu & Kashmir Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Mar 2023
- **Citation:** TCN-2023-NCLT-04307
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ace-engineering-india-pvt-ltd-ia-no-312-2023-and-cp-ib-no-54-chd-jk-2019-a43718ff

## Summary

### Background

The Jammu & Kashmir Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Ace Engineering (India) Pvt. Ltd. The bank claimed that the corporate debtor had defaulted on credit facilities availed in 2012, including cash credit and bank guarantee facilities. The corporate debtor was declared a Non-Performing Asset (NPA) on 31.03.2016. The bank issued a recall notice on 10.04.2017. The corporate debtor argued that there was a full and final settlement of accounts, with more than Rs. 11.30 crore paid. The bank denied any such settlement and claimed that the outstanding amount remained unpaid.

## Facts

Jammu & Kashmir Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Ace Engineering (India) Pvt. Ltd. Ace Engineering availed credit facilities in 2012, including a cash credit limit of Rs. 9 crores and a bank guarantee facility of Rs. 5 crores. The last payment from Ace Engineering was on 29.12.2017. The account was declared an NPA on 31.03.2016. The total amount claimed to be in default is Rs. 10,11,23,983.19 as of 31.10.2018, including interest. Ace Engineering claimed a full and final settlement of accounts, with more than Rs. 11.30 crore paid. The bank denied any such settlement. The guarantors, Munish Bhatia and Sidharth Bhatia, entered into an agreement to sell property to repay the loan. The bank

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## Issues and analysis

### Issue 1: Whether the present application …

**Ratio:** The limitation period for filing an application under Section 7 of the IBC is three years

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**Reasoning:** The date of default is mentioned as 31.03.2016, when the account of the corporate debtor

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**Interpretation:** The date of default is the date on which the corporate debtor's account was

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**Application:** The application was filed within three years from the date of default, as the

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Jammu & Kashmir…
- **Respondents:** Ace Engineering…

## Timeline

- **2010-12-29 — Incorporation of…**: Ace Engineering (India) Pvt. Ltd. was…
- **2012-01-01 — Availing of Credit…**: The corporate debtor availed various credit loan facilities, including cash credit 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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