# In the matter of Aceagro Industries Pvt. Ltd.

> NCLT judgment dated 2023-10-03. Citation: TCN-2023-NCLT-01425. The case involves an application (IA 693/2021) filed in connection with a Company Petition…

- **Court:** NCLT
- **Order date:** 3 Oct 2023
- **Citation:** TCN-2023-NCLT-01425
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aceagro-industries-pvt-ltd-94a64caa

## Summary

### Background

The case involves an application (IA 693/2021) filed in connection with a Company Petition (CP(IB)3454/MB/2019) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The applicant, State Bank of India, sought condonation of a delay of 1155 days in filing the company petition. The respondent is Ace Agro Industries Pvt Ltd. The applicant argued that the delay was due to pursuing SARFAESI actions and filing an Original Application in Debt Recovery Tribunal. The respondent opposed the condonation, arguing that the delay was not satisfactorily explained.

## Facts

State Bank of India filed C.P.(IB)No. 3454 of 2019 under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process against Ace Agro Industries Pvt Ltd. State Bank of India also filed IA 693/2021 seeking condonation of delay of 1155 days in filing the C.P.(IB). The date of default was 31st July, 2013, and the three-year period expired on 30th July, 2016. The applicant was exploring options for recovery and negotiating for settlement during the period from 30th July, 2016, until the filing of the CIRP application. The applicant initiated SARFAESI actions and filed an Original Application in Debt Recovery Tribunal, Mumbai. The applicant bank failed to place on record any acknowledgement of debt, except Balance

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## Issues and analysis

### Issue 1: Whether the delay of 1155 days in filing the company petition under Section 7 of the Insolvency and …

**Ratio:** Section 5 of the Limitation Act allows the court to condone delay if sufficient cause is

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**Reasoning:** The court reasoned that the applicant was aware of the default and could have initiated

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**Interpretation:** Section 5 of the Limitation Act is interpreted to mean that while the court has

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**Application:** In this case, the court found that the applicant's reasons for the delay were

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** State Bank of…
- **Respondents:** Ace Agro Industrie…

## Timeline

- **2013-07-31 — Date of D…**: The date of default by the…
- **2016-07-30 — Expiry of Three-Year…**: The three-year period from the date of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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