# In the matter of IBD Universal Private Limited (IB) No. 353(PB)-2022

> NCLT judgment dated 2023-01-30. Citation: TCN-2023-NCLT-04862. Bank of Baroda filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Jan 2023
- **Citation:** TCN-2023-NCLT-04862
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ibd-universal-private-limited-ib-no-353pb-2022-7fb6631c

## Summary

### Background

Bank of Baroda filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s IBD Universal Private Limited, the Corporate Debtor, who acted as a guarantor for a loan facility extended to NIIL Infrastructure Pvt. Ltd. The Corporate Debtor defaulted on its guarantee obligations, leading to the application for CIRP. The account was declared NPA on 31st October 2016.

## Facts

Bank of Baroda extended a credit facility in the form of a term loan of Rs. 40 Crores to NIIL Infrastructure Pvt. Ltd. on August 1, 2014. M/s IBD Universal Private Limited acted as the corporate guarantor for this loan. The account became a non-performing asset (NPA) on October 31, 2016, and the last payment was received on March 31, 2017. A notice under Section 13(2) of the SARFAESI Act was issued to the Corporate Debtor on March 26, 2018, and a legal recall notice was issued on October 1, 2019, demanding repayment of Rs. 42,53,84,673. A Section 7 petition against the principal borrower, NIIL Infrastructure Pvt. Ltd., was admitted on March 28, 2018. The Corporate Debtor acknowledged its liability under the guarantee on July 12, 2017. The present petition was filed on

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## Issues and analysis

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

**Ratio:** The Supreme Court's directives on the extension of limitation during the COVID-19

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**Reasoning:** The Adjudicating Authority considered the acknowledgment of debt by the Corporate Debtor

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**Interpretation:** The limitation period is calculated from the date of default or acknowledgment

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**Application:** The court found that the application was filed within the extended limitation

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## Parties

- **Judges:** Ramalingam…; Sh. Avinash K.…
- **Appellants:** Bank of B…
- **Respondents:** M/s IBD Universal…

## Timeline

- **2014-08-01 — Loan Disbur…**: Credit facility of Rs. 40 Crores…
- **2016-10-31 — Account Decla…**: The account became a…

## 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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