# In the matter of Khadkeshwar Hatcheries Limited C.P.(IB) 387-MB-2022

> NCLT judgment dated 2023-06-20. Citation: TCN-2023-NCLT-02870. Axis Bank Limited, the Financial Creditor, filed a Company Petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 20 Jun 2023
- **Citation:** TCN-2023-NCLT-02870
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khadkeshwar-hatcheries-limited-cpib-387-mb-2022-0b176dd3

## Summary

### Background

Axis Bank Limited, the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Khadkeshwar Hatcheries Limited, the Corporate Debtor, due to an unresolved financial debt of Rs. 16,41,70,796/- as of 21.12.2021. The Corporate Debtor had approached the Financial Creditor for various cash credit facilities and term loans between 2004 and 2016. The Corporate Debtor started defaulting in 2010. The Financial Creditor classified the Corporate Debtor's account as a Non-Performing Asset (NPA) on 23rd November 2016. A Statutory Demand Notice was issued on 28th February 2017. An OTS was sanctioned in February 2020, but the Corporate Debtor proposed a modified

…

## Facts

Axis Bank Limited extended various cash credit facilities and term loans to Khadkeshwar Hatcheries Limited between 2004 and 2016. The last credit facility was sanctioned on June 30, 2016, for Rs 7,00,00,000/-. To secure these facilities, the Corporate Debtor executed several hypothecation deeds, records of mortgage, and memoranda of entry. The Corporate Debtor started defaulting on repayments around 2010. A Letter of Acknowledgment of debt dated February 23, 2015, confirmed the Corporate Debtor's indebtedness of Rs 6,99,87,643.21. On November 23, 2016, the Financial Creditor classified the Corporate Debtor's account as a Non-Performing Asset (NPA). A Recall Notice was issued on December 15, 2016, seeking recall of Rs.8,65,76,698/-. A Statutory Demand Notice was issued

…

## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** Section 18 of the Limitation Act, 1963, states that an acknowledgment of liability in

…

**Reasoning:** The Corporate Debtor provided a written acknowledgment of debt through the One Time

…

**Interpretation:** The acknowledgment of debt by the Corporate Debtor in the OTS and balance

…

**Application:** The Corporate Debtor's written acknowledgment of debt through the OTS and

…

## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** Axis Bank L…
- **Respondents:** Khadkeshwar…
- **Advocates:** Abha P…; Annirudh Purusotha…

## Timeline

- **2004-01-01 — Loan Applic…**: Corporate Debtor approached Financial Creditor for cash credit facilities and term loans…
- **2010-01-01 — Default on Re…**: Corporate Debtor started…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khadkeshwar-hatcheries-limited-cpib-387-mb-2022-0b176dd3