# In the matter of Nanai Dairy Pvt. Ltd. I.A. No. 2556 of 2022 In C.P. No. (IB) 4455-MB-2019

> NCLT judgment dated 2023-01-24. Citation: TCN-2023-NCLT-04928. The Bank of Maharashtra, as the Financial Creditor, initiated Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 24 Jan 2023
- **Citation:** TCN-2023-NCLT-04928
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nanai-dairy-pvt-ltd-ia-no-2556-of-2022-in-cp-no-ib-4455-mb-2019-fab0aaf7

## Summary

### Background

The Bank of Maharashtra, as the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Nanai Dairy Pvt. Ltd., the Corporate Debtor, due to defaults in payment. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had approached the Financial Creditor for loan facilities, which were sanctioned. However, the Corporate Debtor defaulted on repayments, leading to the account being declared a Non-Performing Asset (NPA). Despite notices and proceedings under the SARFAESI Act, the Corporate Debtor failed to make payments. The Financial Creditor filed an application for condonation of delay in filing the petition.

## Facts

The Bank of Maharashtra sanctioned loan facilities to Nanai Dairy Pvt. Ltd. for its milk production business. These facilities included term loans and cash credit facilities with varying interest rates. The Corporate Debtor defaulted on repayments, leading to the account being declared an NPA on May 31, 2013. The outstanding amount as of November 20, 2019, was Rs. 13,25,18,166/-, including a principal amount of Rs. 8,63,44,766/-. The Financial Creditor issued a notice under Section 13(2) of the SARFAESI Act on August 12, 2013, but the Corporate Debtor failed to respond or make payments. The Corporate Debtor proposed a One Time Settlement (OTS) on February 6, 2021, which did not materialize. The Financial Creditor initiated proceedings in the Debt Recovery Tribunal

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## Issues and analysis

### Issue 1: Whether the delay in filing the …

**Ratio:** The provisions of the Limitation Act, 1963, apply to petitions filed under the Insolvency

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**Reasoning:** The court considered the Financial Creditor's diligent prosecution of its claim,

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**Interpretation:** The interpretation of 'sufficient cause' for condonation of delay is based on

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**Application:** The court applied the ratio to the facts, finding that the Financial Creditor

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** Nanai Dairy Pvt.…

## Timeline

- **2013-05-31 — Account decla…**: The account of the Corporate Debtor was…
- **2013-08-12 — SARFAESI…**: The Financial Creditor issued a notice…

## 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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