# In the matter of Barasat-Krishnagar Expressways Limited

> NCLT judgment dated 2023-11-28. Citation: TCN-2023-NCLT-00555. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 28 Nov 2023
- **Citation:** TCN-2023-NCLT-00555
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/barasat-krishnagar-expressways-limited-eec58010

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Barasat-Krishnagar Expressways Limited, alleging default in payment of financial debt. The corporate debtor was undertaking the project of implementation of four laning of existing 2 lane road stretch from Barasat - Krishnagar section of National Highway-34. The lenders formed into a consortium led by Oriental Bank of Commerce and sanctioned term loan facilities of Rs.705.60 crores for the purpose of execution of the project. The financial creditor contended that the corporate debtor failed to repay the outstanding loan as per the terms of the Common Loan Agreement. The corporate debtor argued that the

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## Facts

State Bank of India (SBI), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Barasat-Krishnagar Expressways Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 24.03.2011 to undertake the project of implementation of four laning of existing 2 lane road stretch from Barasat - Krishnagar section of National Highway-34. The Corporate Debtor approached various lenders, including SBI and other banks, for financial assistance. A consortium of lenders led by Oriental Bank of Commerce sanctioned term loan facilities of Rs.705.60 crores. The Corporate Debtor executed a Common Loan Agreement dated 26.09.2011 with all lenders. The

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## Issues and analysis

### Issue 1: Whether the financial debt, payment of which has been due and default by the Corporate Debtor, is …

**Ratio:** Section 18 of the Limitation Act, 1963, states that any debt acknowledged in writing

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**Reasoning:** The court reasoned that the Corporate Debtor had acknowledged the debt in its annual

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**Interpretation:** The court interpreted Section 18 of the Limitation Act, 1963, in the context of

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

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** State Bank of…
- **Respondents:** Barasat-Krishnagar…

## Timeline

- **2011-03-24 — Incorporation of…**: Barasat-Krishnagar Expressways Limited was incorporated to undertake the project of…
- **2011-09-26 — Common Loan A…**: The Corporate Debtor executed a Common Loan Agreement with all lenders, including State…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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