# In the matter of Evershine Wood Packaging Private Limited CP(IB)-12(CHE)2023

> NCLT judgment dated 2023-06-23. Citation: TCN-2023-NCLT-02815. The case involves an application filed by Indian Bank under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 23 Jun 2023
- **Citation:** TCN-2023-NCLT-02815
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/evershine-wood-packaging-private-limited-cpib-12che2023-f9ad0414

## Summary

### Background

The case involves an application filed by Indian Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Evershine Wood Packaging Private Limited. The Corporate Debtor was incorporated on 05.05.2005. The Financial Creditor had sanctioned OCC facilities to the Corporate Debtor, which were renewed from time to time under CEGLS. The Corporate Debtor defaulted in repayment obligations, leading the Financial Creditor to issue notices under the SARFAESI Act. The Corporate Debtor admitted to financial difficulties due to demonetization, GST, and RERA. The Financial Creditor claimed the date of default as 23.12.2020, while the Corporate Debtor claimed it as March 2020, arguing the claim was barred by

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## Facts

Indian Bank, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Evershine Wood Packaging Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 05.05.2005 with an authorized share capital of Rs.7,99,00,000/- and a paid-up share capital of Rs.7,98,20,000/-. The Financial Creditor had sanctioned OCC facilities to the Corporate Debtor, which were renewed from time to time under CEGLS. The Corporate Debtor executed various documents, including sanction letters, demand promissory notes, letters of continuity, agreements of guarantee, and agreements for open cash credit. The Corporate Debtor defaulted in repayment obligations, leading the Financial Creditor to issue

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is within the period of limitation as …

**Ratio:** Section 238A of the IBC, 2016, read with Section 18 of the Limitation Act, 1963, provides

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**Reasoning:** The Adjudicating Authority considered the acknowledgements of debt made by the Corporate

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**Interpretation:** Section 238A of the IBC incorporates the provisions of the Limitation Act,

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**Application:** In this case, the Corporate Debtor submitted OTS proposals acknowledging the

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## Parties

- **Judges:** Shri. Sanji…; Shri. Samee…
- **Appellants:** Indian…
- **Respondents:** Evershine Wood…
- **Advocates:** Pranava C…; Mr.Thanu…

## Timeline

- **2005-05-05 — Incorporation of…**: Evershine Wood Packaging…
- **2017-12-28 — Sanction…**: Sanction Letter issued to…

## 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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