# In the matter of AL Nafees Frozen Food Exports Private Limited Company Petition No. (IB)-204(ND)-2023

> NCLT judgment dated 2023-07-04. Citation: TCN-2023-NCLT-02678. Central Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLT-02678
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/al-nafees-frozen-food-exports-private-limited-company-petition-no-ib-204nd-2023-030597ca

## Summary

### Background

Central Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against AL Nafees Frozen Food Exports Private Limited. The bank claimed that the corporate debtor defaulted on a working facility credit limit of Rs. 97,00,00,000.00. The corporate debtor opposed the application, primarily on the ground of limitation and the absence of Union Bank of India as a co-applicant, since it was a consortium loan. The applicant bank contended that the application was within the limitation period due to the acknowledgment of debt by the corporate debtor in an OTS proposal and the exclusion of certain periods due to a Supreme Court order related to the COVID-19 pandemic.

## Facts

Central Bank of India sanctioned a working facility credit limit of Rs. 97,00,00,000.00 to AL Nafees Frozen Food Exports Private Limited. The corporate debtor defaulted on the repayment of the debt, with the date of default being 30.10.2017, when the account was declared NPA. The bank claimed an outstanding debt of Rs. 83,17,66,730.65 as of 03.03.2023. The corporate debtor submitted an OTS proposal on 20.07.2019, which was accepted by the bank on 16.11.2019. The corporate debtor argued that the application was barred by limitation and that Union Bank of India, another member of the consortium, was not made a co-applicant. The corporate debtor also claimed to have discharged its debt to Union Bank of India. The applicant bank relied on the OTS proposal as an

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## Issues and analysis

### Issue 1: Whether the present Application is …

**Ratio:** Section 18 of the Limitation Act states that if, before the expiration of the prescribed

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**Reasoning:** The Adjudicating Authority considered the OTS proposal submitted by the corporate debtor

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**Interpretation:** The court interpreted Section 18 of the Limitation Act and the Supreme Court's

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**Application:** The court applied the ratio to the facts of the case, noting that the OTS

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Central Bank of…
- **Respondents:** AL Nafees Frozen…
- **Advocates:** Vishal Hi…; Abhishek…; +4 more

## Timeline

- **2010-09-03 — Board Reso…**: Board Resolution passed at Board Meeting of the Respondent to accept/obtain various…
- **2011-12-14 — Board Reso…**: Board Resolution passed at Board Meeting of the Respondent to accept/obtain Ad-hoc FBWC…

## 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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