# In the matter of Neesa Infrastructure Limited CP(IB)-171-AHM-2022

> NCLT judgment dated 2023-06-19. Citation: TCN-2023-NCLT-02874. The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 Jun 2023
- **Citation:** TCN-2023-NCLT-02874
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neesa-infrastructure-limited-cpib-171-ahm-2022-171799e7

## Summary

### Background

The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Neesa Infrastructure Limited, citing a default amount of Rs 48,15,13,790/-. The corporate debtor had approached the financial creditor for credit facilities in 2005, which were sanctioned and enhanced over time. A restructuring agreement was executed in 2013, but the corporate debtor failed to comply with its terms, leading to the account being declared an NPA in 2014. The financial creditor withdrew from the CDR and issued a legal notice. The corporate debtor also confirmed the balance through various confirmation letters and an OTS confirmation letter.

## Facts

State Bank of India (SBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Neesa Infrastructure Limited. Neesa Infrastructure Limited had approached SBI for credit facilities in 2005, and SBI sanctioned Rs 6 Cr. The facilities were enhanced over time, reaching Rs 56.87 Cr by 2011. The date of default was stated as 01.03.2012. A Corporate Debt Restructuring (CDR) agreement was executed on 23.03.2013, but Neesa Infrastructure Limited failed to comply with the security conditions. SBI withdrew from CDR on 07.06.2014. The account was declared NPA on 28.01.2014. SBI issued an OTS letter on 26.08.2019 for Rs 33,28,27,464/-, acknowledged by Neesa Infrastructure Limited on

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## Issues and analysis

### Issue 1: Whether the petition filed by the financial creditor is within the limitation period as prescribed …

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

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**Reasoning:** The court observed that the corporate debtor had acknowledged its liability through

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**Interpretation:** The acknowledgment of debt by the corporate debtor before the expiry of the

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**Application:** In this case, the corporate debtor's acknowledgment of debt through balance

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## Parties

- **Judges:** SHAMMI…; KAUSHALENDRA…
- **Appellants:** State Bank of…
- **Respondents:** Neesa Infrastructu…; Neesa Infrastructu…

## Timeline

- **2005-01-01 — Credit Facilities…**: The corporate debtor approached the financial creditor for credit facilities to meet its…
- **2005-10-14 — Credit Facilities…**: The financial creditor sanctioned total credit facilities of Rs 6 Cr to the corporate…

## 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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