# In the matter of Future Colonizers & Construction Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03080. The application was filed by HSIIDC Ltd under Section 60(5)(c) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/future-colonizers-construction-limited-5eedec7c

## Summary

### Background

The application was filed by HSIIDC Ltd under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016, seeking directions for the acceptance of a claim concerning a financial loan given by the applicant to the corporate debtor via loan agreements dated 2013-01-14 and 2013-02-27. The Resolution Professional rejected the claim via emails dated 2023-01-25, 2013-01-14 and 2013-02-27.

## Facts

M/s Libra Auto & General Finance Ltd. provided financial assistance to M/S Future Colonizers & Construction Limited. Two loan agreements were executed on 2013-01-14 and 2013-02-27. The corporate debtor issued cheques (105301 and 105302) on 2017-12-21 and 2017-12-22, respectively, which were dishonored due to 'exceeds arrangement'. The cheques were re-presented in January 2018 but were again dishonored. The applicant initiated proceedings under Section 138 of the Negotiable Instruments Act. Upon learning of the CIRP initiation on 2022-10-13, the applicant submitted claims via WhatsApp on 2023-01-11 and 2023-01-12, and through Form C on 2023-01-18. The IRP rejected the claims on 2023-01-25, citing that the claim was time-barred, unsubstantiated interest and

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## Issues and analysis

### Issue 1: Whether the claim submitted by the applicant was time-barred under the Insolvency and Bankruptcy …

**Ratio:** Section 238(A) of the IBC makes the provisions of the Limitation Act applicable to IBC

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**Reasoning:** The court noted that the loan agreements were drawn in 2013 and the cheques issued by the

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**Interpretation:** The interpretation of Section 238(A) of the IBC and Article 137 of the

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**Application:** In this case, the court found that the claim was time-barred because the

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s Libra Auto &…
- **Respondents:** M/S Future…; Rajeev Bh…

## Timeline

- **2013-01-14 — Loan Agre…**: First loan agreement between M/s Libra Auto & General Finance Ltd. and M/S Future…
- **2013-02-27 — Loan Agre…**: Second loan agreement between M/s Libra Auto & General Finance Ltd. and M/S Future…

## 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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