# In the matter of Jupiter Leys Private Limited

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00036. IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jupiter-leys-private-limited-61755a34

## Summary

### Background

IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Jupiter Leys Private Limited, the Corporate Debtor. The application seeks to admit the case, initiate CIRP, declare a moratorium, and appoint an Interim Resolution Professional (IRP). The Financial Creditor (IDBI) claims that the Corporate Debtor (Jupiter Leys) defaulted on a loan facility amounting to Rs. 44,52,67,587.66 as of 05.05.2023. The Corporate Debtor raised objections, including the validity of the authority letter and the claim being barred by limitation.

## Facts

IDBI Bank Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Jupiter Leys Private Limited (Corporate Debtor). The Financial Creditor sanctioned a loan facility of Rs. 15.5 crores to the Corporate Debtor on 24.09.2009 and 30.09.2014. The Corporate Debtor created an equitable mortgage on properties on 03.11.2009, 20.07.2010, and 22.02.2011, and hypothecated its current assets on 24.09.2009 and 30.09.2014. The Corporate Debtor's directors, Mr. Vinu Sagar and Mr. T V Vijayan, executed personal guarantees. The Corporate Debtor acknowledged the debt as long-term borrowings in its balance sheets as of 31.03.2019, 31.03.2020, and 31.03.2021. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is within the period of limitation as …

**Ratio:** The principle is that acknowledgements of debt by the Corporate Debtor, such as in

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**Reasoning:** The Tribunal considered the date of default, the NPA declaration date, the revival letter

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**Interpretation:** The interpretation of the law is that acknowledgements of debt, even after the

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**Application:** In this case, the Corporate Debtor acknowledged the debt in its audited balance

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## Parties

- **Judges:** Shyam Babu…; T Krishna…
- **Appellants:** IDBI Bank L…
- **Respondents:** Jupiter Leys…

## Timeline

- **2009-09-24 — Loan Facility S…**: Financial Creditor sanctioned a loan…
- **2015-01-26 — Date of D…**: The date of default of debt…

## 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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