# In the matter of Indira Container Terminal Private Limited

> NCLT judgment dated 2024-05-09. Citation: TCN-2024-NCLT-01385. Canara Bank filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 May 2024
- **Citation:** TCN-2024-NCLT-01385
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indira-container-terminal-private-limited-e608ce0d

## Summary

### Background

Canara Bank filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Indira Container Terminal Private Limited. The credit facility was sanctioned in 2008, and the account was classified as NPA in 2013. The Corporate Debtor had approached the Petitioner for restructuring, but the restructuring could not be implemented. The Respondent contested the petition, arguing it was barred by limitation and that the Applicant had financed a project, not merely lent money. The Respondent also claimed delays by MbPT hindered project implementation.

## Facts

Canara Bank, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Indira Container Terminal Private Limited (ICTPL), the Corporate Debtor. The Corporate Debtor was sanctioned a term loan of Rs. 210 Crore in 2008. The account was classified as a Special Mentioned Account and later as NPA on 03.12.2013 due to defaults in payment. The Corporate Debtor acknowledged the debt in revival letters. The Corporate Debtor made an OTS proposal, which did not materialize. The Respondent filed Interlocutory Application no. 1593/2024 under section 65(1) of the IBC. The Respondent argued the petition was barred by limitation, as the credit facility was provided in

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## Issues and analysis

### Issue 1: Whether the application under Section 7 …

**Ratio:** Section 18 of the Limitation Act, 1963, provides for a fresh period of limitation from

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**Reasoning:** The NCLT reasoned that the monthly payments received by the Financial Creditor from the

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**Interpretation:** The continuous withdrawal from such account of the Corporate Debtor by the

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**Application:** The NCLT applied the ratio to the facts, noting that the Corporate Debtor had

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## Parties

- **Judges:** V. G. Bisht…; SH. PRABHAT…
- **Appellants:** Canara…
- **Respondents:** Indira Container…

## Timeline

- **2008-11-07 — Sanction of T…**: Applicant sanctioned the Term Loan of Rs. 210 Crore and communicated the same by its…
- **2013-12-03 — Account Classified as…**: Account of Corporate Debtor slipped to NPA on 03.12.2013 in the Books of Applicant in…

## 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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