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

> NCLT judgment dated 2022-02-21. Citation: TCN-2022-NCLT-04022. 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-04022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kerala-chamber-of-commerce-industries-cpib-33-kob-2021-abd126cd

## 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, for initiating Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a total amount of Rs. 8,60,00,000/- due from the Corporate Debtor. The Corporate Debtor availed various credit facilities from South Indian Bank, later assigned to Phoenix ARC. The loans were for business purposes, including the purchase of elevators and generators, and construction of a commercial building. The Corporate Debtor acknowledged the debt in balance sheets until 2019. The Corporate Debtor contested the application, citing limitation issues and

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## Facts

Phoenix ARC Private Ltd, as the assignee of South Indian Bank, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kerala Chamber of Commerce and Industries, claiming a debt of Rs. 8,60,00,000/-. The Corporate Debtor had availed credit facilities from South Indian Bank for business purposes, including purchasing passenger elevators and generators, and constructing a commercial building. The loans were secured by hypothecation and equitable mortgage. The Corporate Debtor acknowledged the debt in its balance sheets until 2019. The loan account was declared NPA on 30.09.2013. The Corporate Debtor argued that the application was barred by limitation and that the applicant was

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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 the limitation of the application. It

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**Interpretation:** The acknowledgment of debt in the balance sheet is sufficient acknowledgment

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**Application:** The Financial Creditor filed the application on 01.09.2021, which is within

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## Parties

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

## Timeline

- **2010-04-17 — Loan Appli…**: Application for loan for purchase of…
- **2010-09-15 — Loan Sanc…**: South Indian Bank sanctioned…

## 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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