# In the matter of Nakoda Fruit Products Private Limited

> NCLT judgment dated 2023-10-13. Citation: TCN-2023-NCLT-01209. PNB Housing Finance Limited filed a petition under Section 7 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Oct 2023
- **Citation:** TCN-2023-NCLT-01209
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nakoda-fruit-products-private-limited-6ab817ca

## Summary

### Background

PNB Housing Finance Limited filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC), seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Nakoda Fruit Products Private Limited, the Corporate Debtor. The petition was filed due to the Corporate Debtor's default on a loan amounting to Rs. 15,18,62,040.07/-.

## Facts

PNB Housing Finance Limited (Financial Creditor) filed a petition under Section 7 of the IBC seeking to initiate CIRP against Nakoda Fruit Products Private Limited (Corporate Debtor) due to loan default. The loan application was dated 2018-09-11. The Financial Creditor sanctioned a loan of Rs. 10,52,00,000/- to the Corporate Debtor, disbursed through multiple transactions between 2018-09-29 and 2019-05-31. The Corporate Debtor defaulted on the loan, leading to the account being classified as a Non-Performing Asset (NPA) on 2019-12-14. A notice was issued on 2020-01-15 under Section 13(2) of the SARFAESI Act. The Financial Creditor issued a pre-sale compliance notice on 2021-09-16. As of 2023-01-19, the total outstanding amount was Rs. 15,18,62,040.07/-. The Corporate

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## Issues and analysis

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

**Ratio:** Section 18 of the Limitation Act allows for the acknowledgement of debt, which can extend

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**Reasoning:** The court observed that the Corporate Debtor submitted OTS proposals to the Financial

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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 court applied the principle of Section 18 of the Limitation Act to the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** PNB Housing…
- **Respondents:** Nakoda Fruit…

## Timeline

- **2018-09-11 — Loan Appli…**: The Corporate Debtor submitted a loan…
- **2018-09-29 — Sanction…**: The Financial Creditor sanctioned a loan of…

## 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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