# In the matter of Eclat Industries Limited C.P (IB) No.08-KB-2020

> NCLT judgment dated 2022-09-21. Citation: TCN-2022-NCLT-00975. The case involves a petition filed by International Asset Reconstruction Company Private…

- **Court:** NCLT
- **Order date:** 21 Sept 2022
- **Citation:** TCN-2022-NCLT-00975
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/eclat-industries-limited-cp-ib-no08-kb-2020-5a7a94bb

## Summary

### Background

The case involves a petition filed by International Asset Reconstruction Company Private Limited (IARC), the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Eclat Industries Limited, the Corporate Debtor. The Corporate Debtor had availed secured credit facilities from IDBI Bank and Bank of Baroda, which later assigned their debts to IARC. Restructuring agreements and One-Time Settlement (OTS) proposals were made, but the Corporate Debtor repeatedly failed to adhere to the payment terms. The Financial Creditor then filed the petition after the Corporate Debtor defaulted on payments and the OTS was revoked.

## Facts

Eclat Industries Limited (Corporate Debtor) availed secured credit facilities from IDBI Bank and Bank of Baroda. IDBI Bank and Bank of Baroda assigned their respective stakes to International Asset Reconstruction Company Private Limited (Financial Creditor). On 28.01.2011, the Corporate Debtor requested restructuring of the loans, and the Financial Creditor agreed on 29.01.2011. The Financial Creditor sanctioned Restructuring Support Finance of Rs. 60 Lakh on 01.02.2011. An Agreement for Restructuring was executed on 04.03.2011. The Corporate Debtor acknowledged an amount of Rs. 2436.77 Lakh as of 04.03.2011. The Financial Creditor issued notices under section 13(2) of the SARFAESI Act on 11.01.2013 and 25.01.2013. The Corporate Debtor obtained a stay from the High

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## Issues and analysis

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

**Ratio:** The principle of limitation is that a legal right must be enforced within a specified

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**Reasoning:** The NCLT reasoned that the Corporate Debtor had repeatedly acknowledged its debt and

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**Interpretation:** The interpretation of the Limitation Act and the Contract Act is crucial in

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**Application:** The NCLT applied the principle that the Corporate Debtor's repeated requests

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** International…
- **Respondents:** Eclat Industries…

## Timeline

- **2010-03-31 — IDBI Bank Ass…**: IDBI Bank assigned secured credit facilities to International Asset Reconstruction…
- **2011-01-22 — Bank of Baroda…**: Bank of Baroda assigned secured credit facilities to International Asset Reconstruction…

## 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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