# In the matter of M B Malls Pvt. Ltd. IB-607-(PB)-2020

> NCLT judgment dated 2022-08-03. Citation: TCN-2022-NCLT-01480. The case involves an application filed by Bank of Baroda under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 3 Aug 2022
- **Citation:** TCN-2022-NCLT-01480
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/m-b-malls-pvt-ltd-ib-607-pb-2020-10a91ea6

## Summary

### Background

The case involves an application filed by Bank of Baroda under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s MB Malls Pvt. Ltd. The application was filed on 14.02.2020, claiming a default of Rs. 43,41,25,983.25 as of 31.01.2020. The account was declared NPA on 29.10.2012. The applicant contends that the corporate debtor defaulted on its financial obligations, leading to the application for CIRP.

## Facts

Bank of Baroda filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s MB Malls Pvt. Ltd. The application was filed on 14.02.2020, claiming a default of Rs. 43,41,25,983.25 as of 31.01.2020. The account was declared NPA on 29.10.2012. The corporate debtor is incorporated under the Companies Act, 1956, with CIN U74899DL1980PTC010175. On 22.11.2007, a credit facility/term loan of Rs. 22.50 Crores was sanctioned by the financial creditor to the corporate debtor for the construction of a commercial mall. Loan and security documents were executed on 14.12.2007. An inter-se agreement was executed on 14.05.2008. An additional term loan of Rs. 3.55 Crores was granted on 26.12.2011.

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## Issues and analysis

### Issue 1: Whether the present …

**Ratio:** Entries in the books of accounts and/or balance sheets of a Corporate Debtor would amount

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**Reasoning:** The Tribunal relied on the judgment of the Hon'ble Supreme Court in Dena Bank (Now Bank

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**Interpretation:** Section 18 of the Limitation Act provides that if a person acknowledges a debt

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**Application:** The Corporate Debtor acknowledged the debt in its balance sheet as on

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Bank of B…
- **Respondents:** M/s. M.B Malls…

## Timeline

- **2007-11-22 — Credit Facility…**: Credit facility/Term Loan of Rs. 22.50 Crores was sanctioned by Financial Creditor to…
- **2007-12-14 — Execution of Loan…**: Loaning and Security Documents executed…

## 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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