# In the matter of Easun Produts of India Private Limited IA(IBC)-668(CHE)-2022 in IBA-617-2020

> NCLT judgment dated 2022-09-19. Citation: TCN-2022-NCLT-01025. DBS Bank India Limited filed IBA/617/2020 under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 19 Sept 2022
- **Citation:** TCN-2022-NCLT-01025
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/easun-produts-of-india-private-limited-iaibc-668che-2022-in-iba-617-2020-6d69162d

## Summary

### Background

DBS Bank India Limited filed IBA/617/2020 under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Easun Products of India Private Limited, claiming a financial debt of Rs.42,50,02,894.15. The Corporate Debtor raised a preliminary objection that the application was barred by limitation, arguing that the debt acknowledgment was beyond the limitation period. The Financial Creditor filed IA(IBC)/668(CHE)/2022 seeking to introduce additional documents to counter the limitation argument, which the Corporate Debtor opposed due to the delay in filing.

## Facts

DBS Bank India Limited (Financial Creditor) filed an application (IBA/617/2020) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Easun Products of India Private Limited (Corporate Debtor) for a default of Rs.42,50,02,894.15 as of 30.06.2020. The Financial Creditor submitted various documents, including working capital facilities agreements, hypothecation agreements, guarantees, and demand promissory notes, to support its claim. The Corporate Debtor contested the application, arguing that it was barred by limitation, as the debt acknowledgment was beyond the three-year limitation period. The Financial Creditor then filed an interlocutory application (IA(IBC)/668(CHE)/2022) to introduce additional documents to overcome the limitation issue, which was

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## Issues and analysis

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

**Ratio:** Section 18 of the Limitation Act, 1963, and Section 25(3) of the Indian Contract Act,

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**Reasoning:** The court reasoned that the Demand Promissory Note dated 09.10.2018 executed by the

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**Interpretation:** Section 25(3) of the Indian Contract Act, 1872, allows for a valid contract

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**Application:** The court applied the principle to the facts, noting that the Demand Promissory

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## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** DBS Bank India…
- **Respondents:** Easun Products of…

## Timeline

- **2008-10-16 — Working Capital…**: Working Capital Facilities issued by…
- **2008-10-17 — Agreement for…**: Agreement for Hypothecation executed by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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