# In the matter of Excel Timbers Private Limited CP(IBC)-52-KOB-2022

> NCLT judgment dated 2023-02-10. Citation: TCN-2023-NCLT-04631. Dhanlaxmi Bank Limited, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04631
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/excel-timbers-private-limited-cpibc-52-kob-2022-678f0ef4

## Summary

### Background

Dhanlaxmi Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Excel Timbers Private Limited, the Corporate Debtor. The Financial Creditor had sanctioned a loan facility to the Corporate Debtor, which was acknowledged by the Corporate Debtor, its Directors, and its Subsidiary. A Facility Agreement was executed, and the Corporate Debtor agreed to repay the loan in equated monthly installments with floating interest. The Corporate Debtor defaulted in repayment, leading to the loan account being classified as NPA. The Financial Creditor initiated SARFAESI proceedings. The application was filed with a delay, and condonation was sought based

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## Facts

Dhanlaxmi Bank Limited sanctioned a loan facility to Excel Timbers Private Limited, documented via a communication dated 2011-12-16. The corporate debtor acknowledged this debt. A facility agreement dated 2011-12-28 was executed, stipulating repayment in 120 monthly installments with 14.50% floating interest. As security, a Demand Promissory Note for Rs. 1,50,00,000/- was executed on 2011-12-28. The corporate debtor acknowledged the liability through letters dated 2014-11-27 and 2017-10-20. SARFAESI proceedings were initiated. The loan account was classified as NPA on 2017-12-05. The application to initiate CIRP was filed on 2022-09-19, seeking condonation of delay due to the Supreme Court's order in MA 21/2021. The respondent argued the application was barred by

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## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** The Supreme Court's Suo Moto order in MA 21/2021 (suo moto WPC No.3/2020) granted an

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**Reasoning:** The court reasoned that the limitation period started on the date of NPA (2017-12-05) and

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**Interpretation:** The interpretation of the Supreme Court's Suo Moto order is crucial. The order

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**Application:** In this case, the remaining period of limitation after excluding the period

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Dhanlaxmi Bank…
- **Respondents:** Excel Timbers…
- **Advocates:** Uma Ran…; S Esw…

## Timeline

- **2011-12-16 — Loan Facility S…**: Financial Creditor sanctioned the loan…
- **2011-12-28 — Facility Agreement…**: Facility Agreement executed between the…

## 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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