# In the matter of Amzen Transportation Industries Private Limited Company Petition No. (IB)- 3 (ND)-2020

> NCLT judgment dated 2022-05-04. Citation: TCN-2022-NCLT-02913. IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 May 2022
- **Citation:** TCN-2022-NCLT-02913
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amzen-transportation-industries-private-limited-company-petition-no-ib-3-nd-2020-d989020f

## Summary

### Background

IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Amzen Transportation Industries Private Limited, referred to as the corporate debtor. The application was filed due to the corporate debtor's default in repaying a term loan facility of Rs. 130 Crore sanctioned on 04.02.2010, with a modification letter dated 16.03.2010. The account was classified as NPA on 29.06.2016, and a loan recall notice was issued on 28.09.2016. The applicant initiated proceedings under Section 13(2) of the SARFAESI Act, 2002, and filed an Original Application before the Debt Recovery Tribunal for recovery of Rs. 105,99,74,991.70/-.

## Facts

IDBI Bank Limited sanctioned a term loan facility of Rs. 130 Crore to Amzen Transportation Industries Private Limited on 04.02.2010, with modifications on 16.03.2010. The loan agreement was executed on 17.03.2010. The corporate debtor defaulted on repayment, leading to the account being classified as NPA on 29.06.2016. A loan recall notice was issued on 28.09.2016. IDBI Bank initiated proceedings under Section 13(2) of the SARFAESI Act, 2002, and filed an Original Application before the Debt Recovery Tribunal on 17.02.2017, seeking recovery of Rs. 105,99,74,991.70/-. The corporate debtor made several payments towards the outstanding dues after the NPA declaration, specifically between 05.11.2018 and 02.09.2019, acknowledging the debt in letters issued during that

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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:** Section 18 of the Limitation Act gets attracted the moment the acknowledgment in writing

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**Reasoning:** The court relied on the Supreme Court's decisions in 'Assets Reconstruction Company

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**Interpretation:** The interpretation of Section 18 of the Limitation Act in conjunction with

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**Application:** In this case, the Corporate Debtor made multiple payments between 05.11.2018

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## Parties

- **Judges:** DHARMINDER…; SUMITAPURKA…
- **Appellants:** IDBI Bank L…
- **Respondents:** Amzen Transportati…; Amzen Transportati…

## Timeline

- **2010-02-04 — Loan Sanc…**: IDBI Bank sanctioned a term loan facility of Rs. 130 Crore to Amzen Transportation…
- **2010-03-16 — Modification…**: Modification letter issued…

## 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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