# In the matter of PASHUPATI DAIRIES PRIVATE LIMITED

> NCLT judgment dated 2025-05-19. Citation: TCN-2025-NCLT-00059. Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 19 May 2025
- **Citation:** TCN-2025-NCLT-00059
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pashupati-dairies-private-limited-ce4035d7

## Summary

### Background

Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Pashupati Dairies Private Limited, the Corporate Debtor, due to a default in payment of a financial debt. The Corporate Debtor acted as a guarantor for loan facilities availed by Kwality Limited, the Principal Borrower. The Principal Borrower's account was classified as NPA, and the Financial Creditor invoked the corporate guarantee. CIRP had already been initiated against the Principal Borrower and another corporate guarantor for the same debt.

## Facts

Bank of India, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Pashupati Dairies Private Limited, the Corporate Debtor. The Corporate Debtor acted as a corporate guarantor for loan facilities availed by M/s Kwality Limited, the Principal Borrower. The Bank of India had sanctioned a working capital limit to Kwality Limited, which was later enhanced through a consortium agreement. The Principal Borrower's account was classified as NPA on 31.08.2018. The Financial Creditor issued a notice under Section 13(2) of the SARFAESI Act, 2002, to the Principal Borrower and the Corporate Debtor, invoking the corporate guarantee. CIRP had already been

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## Issues and analysis

### Issue 1: Whether the present petition is maintainable given the Corporate Debtor's argument that it is …

**Ratio:** A fresh period of limitation commences from the date of acknowledgement of debt by the

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**Reasoning:** The Adjudicating Authority noted that the Corporate Debtor acknowledged the guarantee in

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**Interpretation:** The acknowledgement of debt in financial statements restarts the limitation

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**Application:** The Corporate Debtor's acknowledgement of the guarantee in its financial

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## Parties

- **Judges:** JYOTSNA S…; Anu Jagmoha…
- **Appellants:** Bank of…
- **Respondents:** M/S PASHUPATI…

## Timeline

- **2003-12-30 — Incorporation of…**: M/s Pashupati Dairies Private…
- **2010-07-21 — Sanction of Working…**: Bank of India sanctioned working capital limit fund based to the extent of Rs.…

## 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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