# In the matter of Newtech Promoters and Developers Pvt. Ltd. IB-2465-(ND)-2019

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00737. The Bank of Maharashtra filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00737
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/newtech-promoters-and-developers-pvt-ltd-ib-2465-nd-2019-0a57befb

## Summary

### Background

The Bank of Maharashtra filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Newtech Promoters and Developers Pvt. Ltd. The application was based on an alleged default of Rs. 77,89,10,700/-. The bank had granted a term loan of Rs. 50.00 crore to the Corporate Debtor for a Group Housing Project, repayable in quarterly installments. The Corporate Debtor defaulted, leading to the account being classified as a Non-Performing Asset (NPA). The bank initiated recovery measures under the SARFAESI Act and also filed a recovery suit before the Debt Recovery Tribunal (DRT). The Corporate Debtor contended that the application was barred by limitation, that the bank was

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## Facts

The Bank of Maharashtra granted a term loan of Rs. 50.00 crore to M/s. Newtech Promoters and Developers Pvt. Ltd. for a Group Housing Project. The loan was repayable in quarterly installments. The Corporate Debtor defaulted on repayment, leading to the account being classified as an NPA on 29.12.2016. The bank initiated recovery measures under the SARFAESI Act, issuing a notice dated 13.03.2018, and filed a recovery suit (O.A. No. 42/2019) before the Debt Recovery Tribunal-II, Delhi, for recovery of Rs. 61,80,55,099.00 as on 18.03.2018. The bank also issued a legal notice dated 11.01.2019 for Rs. 70,24,06,243.00. The Corporate Debtor acknowledged the debt and requested for a One Time Settlement (OTS). The Corporate Debtor's project was under the supervision and control

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## Issues and analysis

### Issue 1: Whether the present application by the petitioner is barred by limitation under Section 238A of the …

**Ratio:** The limitation period for recovery of dues commences from the due date of each

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**Reasoning:** The NCLT held that the contention of the Corporate Debtor regarding limitation could not

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**Interpretation:** Section 238A of the IBC mandates that applications must be filed within the

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**Application:** In this case, the Corporate Debtor's acknowledgment of debt through various

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** M/s. Newtech…

## Timeline

- **2012-12-07 — Sanction…**: Bank of Maharashtra sanctioned term loan of…
- **2013-02-06 — Loan Documents…**: Corporate Debtor executed loan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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