# In the matter of Krosslink Infrastructure Ltd.

> NCLT judgment dated 2023-11-02. Citation: TCN-2023-NCLT-00877. M/s Starwort Engineers Pvt. Ltd. filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 2 Nov 2023
- **Citation:** TCN-2023-NCLT-00877
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/krosslink-infrastructure-ltd-a970bcd9

## Summary

### Background

M/s Starwort Engineers Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Krosslink Infrastructure Ltd., alleging default in payment. The financial creditor and corporate debtor entered into a Facility Agreement dated 15.03.2017, where the corporate debtor borrowed Rs. 6,00,75,000/- as an Inter Corporate Deposit (ICD) at 15% per annum. The corporate debtor requested to renew the repayment period, which was extended to 30.03.2020. Despite a demand notice dated 01.02.2023, the outstanding amount of Rs. 13,07,49,534/- remained unpaid. A settlement agreement dated 06.03.2023 was executed, but the corporate debtor failed to comply with its stipulations.

## Facts

M/s Starwort Engineers Pvt. Ltd. (Financial Creditor) filed a petition against M/s Krosslink Infrastructure Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The Corporate Debtor had borrowed Rs. 6,00,75,000/- from the Financial Creditor as an Inter Corporate Deposit (ICD) as per a Facility Agreement dated 15.03.2017, with interest at 15% per annum. The repayment date was initially set for 14.03.2019. The Corporate Debtor requested an extension, which was granted until 30.03.2020. A demand notice was issued on 01.02.2023 for Rs. 13,07,49,534/-, but the amount remained unpaid. A settlement agreement was reached on 06.03.2023, requiring a payment of Rs. 1 crore by 09.03.2023, which was not honored. The

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## Issues and analysis

### Issue 1: Whether the petition filed by the …

**Ratio:** The limitation period for filing a petition under Section 7 of the IBC is three years

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**Reasoning:** The court reasoned that the Corporate Debtor's request for extension of the repayment

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**Interpretation:** The court interpreted the provisions of the Limitation Act and the IBC to

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** M/s Starwort…
- **Respondents:** M/s Krosslink…

## Timeline

- **2017-03-15 — Facility Ag…**: Facility Agreement entered between Financial Creditor and Corporate Debtor for an Inter…
- **2019-03-29 — Request for E…**: Corporate Debtor requested the Financial…

## 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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