# In the matter of C. Mahendra Exports Limited

> NCLT judgment dated 2024-10-04. Citation: TCN-2024-NCLT-00489. The Financial Creditor, Bank of Baroda, filed a petition under section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 4 Oct 2024
- **Citation:** TCN-2024-NCLT-00489
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/c-mahendra-exports-limited-10b45d83

## Summary

### Background

The Financial Creditor, Bank of Baroda, filed a petition under section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s C. Mahendra Exports Limited due to outstanding debt. The Corporate Debtor contested the petition primarily on grounds of limitation, arguing that the default date and NPA declaration fell outside the three-year limitation period for filing such petitions.

## Facts

Bank of Baroda, the Financial Creditor, filed a Company Petition under section 7 of the Insolvency and Bankruptcy Code, 2016 ( IBC ) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s C. Mahendra Exports Limited, the Corporate Debtor. The Financial Creditor is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, incorporated on July 20, 1908. The Corporate Debtor, incorporated on January 4, 2007, under the Companies Act, 1956, is engaged in the business of manufacturing and trading diamonds, precious stones, and jewelry. The Corporate Debtor has been banking with the Financial Creditor since 2010 and was granted credit facilities, including a sanction letter dated April 3, 2013.

## Issues and analysis

### Issue 1: Whether the petition filed by the …

**Ratio:** The period during which winding-up proceedings were pending before the High Court and

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**Reasoning:** The NCLT noted that a winding-up petition was admitted by the Bombay High Court on July

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**Interpretation:** The NCLT interpreted **Section 446** of the Companies Act, 1956, which bars

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**Application:** Given that the winding-up proceedings were transferred to the NCLT on November

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## Parties

- **Judges:** V. G. Bisht…; Prabhat…; +1 more
- **Appellants:** Bank of B…
- **Respondents:** M/s C. Mahendra…
- **Advocates:** Harish K.…; Rathina Maravarnan…; +2 more

## Timeline

- **August 31, 2010 — Working Capital…**: Corporate Debtor executed a Working Capital Consortium Agreement and Memorandum of…
- **April 3, 2013 — Sanction…**: Corporate Debtor was granted credit…

## 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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