# In the matter of Jatalia Global Venture Ltd.

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02139. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 7 Mar 2024
- **Citation:** TCN-2024-NCLT-02139
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jatalia-global-venture-ltd-6650963c

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, filed by Aar Kay Industries (Prop. Indian Securities Ltd.) against Jatalia Global Venture Ltd., the corporate debtor, for default on a financial debt of Rs. 1 crore. The Adjudicating Authority initially dismissed the application as time-barred, but the NCLAT reversed this decision and directed the revival of the application. The financial creditor and the corporate debtor had a good relationship in 2017, and the financial creditor extended financial assistance to the corporate debtor to the extent of Rs. 1 crore for business at a 15% rate of interest. The amount was disbursed in two tranches of Rs. 50,00,000 each on 01.09.2017 and 19.09.2017. The corporate debtor

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## Facts

Aar Kay Industries (Prop. Indian Securities Ltd.) extended a financial assistance of Rs. 1 crore to Jatalia Global Venture Ltd. in 2017, with disbursements of Rs. 50,00,000 on 01.09.2017 and Rs. 50,00,000 on 19.09.2017, carrying an interest rate of 15% per annum. Jatalia Global Venture Ltd. defaulted on the repayment of the loan. Aar Kay Industries filed an application under Section 7 of the IBC, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Jatalia Global Venture Ltd. The application was initially dismissed as time-barred but was later revived by the NCLAT. Jatalia Global Venture Ltd. acknowledged the debt in its balance sheet for the period ended 31.03.2018 and in a confirmation letter dated 01.04.2021. These acknowledgments are crucial

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## Issues and analysis

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

**Ratio:** Section 18 of the Limitation Act provides that where an acknowledgment of liability is

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**Reasoning:** The court considered the acknowledgments of debt by the corporate debtor in its balance

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**Interpretation:** Section 18 of the Limitation Act is interpreted to mean that any acknowledgment

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**Application:** The acknowledgments of debt by Jatalia Global Venture Ltd. extended the

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** Aar Kay Ind…
- **Respondents:** Jatalia Global…

## Timeline

- **2017-01-01 — Financial Ass…**: Financial creditor extended financial assistance to the corporate debtor to the extent of…
- **2017-09-01 — First Disbu…**: Rs. 50,00,000 disbursed…

## 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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