# In the matter of Cineline Exports Private Limited

> NCLT judgment dated 2023-11-24. Citation: TCN-2023-NCLT-00560. The case involves a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 24 Nov 2023
- **Citation:** TCN-2023-NCLT-00560
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cineline-exports-private-limited-5b3a7e27

## Summary

### Background

The case involves a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Satra Properties (India) Limited, the Financial Creditor, through Resolution Professional Ms. Vaishali Arun Patrikar, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Cineline Exports Private Limited, the Corporate Debtor. The petition was filed due to the Corporate Debtor's failure to repay an outstanding debt of Rs. 4,60,02,495/- along with interest. The Financial Creditor claims that the Corporate Debtor acknowledged the debt in its balance sheet.

## Facts

Satra Properties (India) Limited, acting as the Financial Creditor, filed a petition under Section 7 of the IBC to initiate CIRP against Cineline Exports Private Limited, the Corporate Debtor. The petition was filed on 2022-12-08, claiming an outstanding debt of Rs. 4,60,02,495/- plus interest of Rs. 1,13,30,732 as of 2022-10-30. The date of default was specified as 2022-03-31. The Corporate Debtor argued that the Petitioner was not a Financial Creditor and that no financial debt existed. The Financial Creditor presented evidence, including balance sheets, showing that the Corporate Debtor had acknowledged the debt. The Inter Corporate Deposit was originally given by M/s. OM Housing Private Limited and after amalgamation of OM Housing Private Limited with M/s. Satra

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## Issues and analysis

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

**Ratio:** Section 18 of the Limitation Act, 1963 states that if a debtor acknowledges a debt in

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**Reasoning:** The Tribunal observed that the Corporate Debtor had acknowledged its liability in its

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**Interpretation:** The acknowledgment of debt in the balance sheet is considered a valid

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**Application:** Since the Corporate Debtor acknowledged the debt in its balance sheet, the

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Satra Properties…
- **Respondents:** Cineline Exports…
- **Advocates:** Pulkit S…; Deep D…; +2 more

## Timeline

- **2007-01-01 — Transfer of…**: Inter Corporate Deposit originally given by M/s. OM Housing Private Limited and after…
- **2020-08-03 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Satra…

## 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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