# In the matter of HIM Cylinders Ltd. CP (IB) No. 149-Chd-HP-2019

> NCLT judgment dated 2022-11-22. Citation: TCN-2022-NCLT-00379. The petition was filed by Syndicate Bank, the Financial Creditor, under Section 7 of the…

- **Court:** NCLT
- **Order date:** 22 Nov 2022
- **Citation:** TCN-2022-NCLT-00379
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/him-cylinders-ltd-cp-ib-no-149-chd-hp-2019-1a708226

## Summary

### Background

The petition was filed by Syndicate Bank, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Him Cylinders Ltd., the Corporate Debtor. The Corporate Debtor allegedly failed to adhere to the terms and conditions of the sanction letter and agreements, leading to the account being declared a Non-Performing Asset (NPA) on 30.10.2017. The Financial Creditor issued a final notice on 14.11.2018, recalling the outstanding amount and invoking guarantees. The Corporate Debtor was incorporated on 19/08/1983.

## Facts

Syndicate Bank, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Him Cylinders Ltd., the Corporate Debtor. The Corporate Debtor failed to adhere to the terms of the loan agreement, leading to the account being classified as a Non-Performing Asset (NPA) on 30.10.2017. The Financial Creditor issued a final notice on 14.11.2018, recalling the outstanding amount. The total amount claimed to be in default was Rs. 19,58,13,060.00/-. The petition was filed on 01.03.2019. The Corporate Debtor initially raised objections regarding the authorization of the petition but was later proceeded ex parte. The Financial Creditor provided evidence of the loan sanction,

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## Issues and analysis

### Issue 1: Whether the present application …

**Ratio:** The limitation period for filing an application under Section 7 of the IBC is three years

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**Reasoning:** The Adjudicating Authority observed that the date of default was 30.10.2017, when the

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**Interpretation:** The limitation period starts from the date of default, which is typically when

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**Application:** Since the petition was filed on 01.03.2019, which is within three years from

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Syndicate…
- **Respondents:** Him Cylinde…

## Timeline

- **1983-08-19 — Incorporation of…**: Him Cylinders Ltd. was…
- **2016-02-06 — Loan San…**: Loan amount of Rs.18,00,00,000/-…

## 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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