# In the matter of Kerala Chamber of Commerce & Industries CP(IB)-33-KOB-2021

> NCLT judgment dated 2022-02-21. Citation: TCN-2022-NCLT-04031. The case involves an application filed by Phoenix ARC Private Ltd, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 21 Feb 2022
- **Citation:** TCN-2022-NCLT-04031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kerala-chamber-of-commerce-industries-cpib-33-kob-2021-04a12427

## Summary

### Background

The case involves an application filed by Phoenix ARC Private Ltd, the Financial Creditor, against Kerala Chamber of Commerce and Industries, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed various credit facilities from South Indian Bank, which were later assigned to Phoenix ARC. The Financial Creditor claims a total amount of Rs. 8,60,00,000/- is due. The Corporate Debtor has raised objections, including arguments regarding limitation and the applicability of Section 7 of the IBC, arguing that the applicant is not a financial creditor but an assignee of the debt. The Corporate Debtor also argued that the loan was for a purpose not

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## Facts

The Kerala Chamber of Commerce and Industries (Corporate Debtor) availed credit facilities from South Indian Bank. On 15.09.2010, South Indian Bank sanctioned a loan of Rs. 110 Lakhs for purchasing passenger elevators and generators, secured by hypothecation and equitable mortgage of land. On 30.12.2010, another loan of Rs. 500 Lakhs was sanctioned for constructing a residential-cum-commercial building, also secured by equitable mortgage. On 01.01.2013, another loan of Rs. 250 Lakhs was sanctioned to purchase and install AC units. The Corporate Debtor acknowledged the debt in writing on 01.01.2013. The loan accounts became NPA on 30.09.2013. The Corporate Debtor acknowledged the debt in its audited financial statements until 2019. Phoenix ARC Private Ltd (Financial

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## Issues and analysis

### Issue 1: Whether the application …

**Ratio:** Section 238A of the IBC incorporates the Limitation Act, 1963. Section 18 of the

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**Reasoning:** The Tribunal considered the contention regarding limitation and referred to Section 238A

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**Interpretation:** The legal issue revolves around whether the application was filed within the

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**Application:** The Tribunal found that the Financial Creditor filed the application on

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## Parties

- **Judges:** Ashok Kumar…; Anil Ku…
- **Appellants:** Phoenix ARC…
- **Respondents:** Kerala Chamber of…
- **Advocates:** Shri.A.V.…; Marian G. M.…

## Timeline

- **2010-09-15 — Loan Sanc…**: South Indian Bank sanctioned a loan of…
- **2010-12-30 — Loan Sanc…**: Another loan of Rs. 500 Lakhs was…

## 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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