# In the matter of P.C. Dey and Son Distributors Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03146. Indian Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03146
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pc-dey-and-son-distributors-private-limited-047935e9

## Summary

### Background

Indian Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against P.C. Dey & Son Distributors Private Limited. The bank had sanctioned credit facilities aggregating to Rs. 21 crores on 30.01.2017, which was later enhanced to Rs. 21,85,24,000. A car loan of Rs. 23,30,000 was also sanctioned on 07.08.2017. The Corporate Debtor started defaulting on payments, leading to the issuance of a notice under Section 13(2) of the SARFAESI Act, 2002. The bank claimed a defaulted amount of Rs. 30,43,11,409, including accrued interest up to 31.01.2023. The Corporate Debtor argued that the application was barred by limitation and that the person signing the application lacked

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## Facts

Indian Bank sanctioned credit facilities to P.C. Dey & Son Distributors Private Limited aggregating to Rs. 21 crores on 2017-01-30. This was later enhanced to Rs. 21,85,24,000. A car loan of Rs. 23,30,000 was also sanctioned on 2017-08-07. The Corporate Debtor defaulted on payments, leading to a notice under Section 13(2) of the SARFAESI Act, 2002, issued on 2022-09-13. The bank claimed a defaulted amount of Rs. 30,43,11,409, including accrued interest, as of 2023-01-31. The initial default date was 2019-10-01, and the loan account was classified as NPA on 2020-01-28. The application under Section 7 of IBC was filed in March 2023. The respondent argued the application was time-barred, considering the default and NPA declaration dates. The applicant contended that

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The limitation period for filing an application under Section 7 of the IBC is generally

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**Reasoning:** The NCLT considered the date of default (2019-10-01), the date of NPA declaration

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**Interpretation:** The Supreme Court's Suo Motu Order provided a specific framework for extending

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**Application:** In this case, the NCLT applied the Supreme Court's framework to the specific

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## Parties

- **Judges:** BIDISHA BA…; SHRI. D.A…
- **Appellants:** Indian…
- **Respondents:** P.C. Dey and Son…
- **Advocates:** Binay Kumar…; R. C. P…; +1 more

## Timeline

- **2017-01-30 — Sanction of Credit…**: Indian Bank sanctioned credit facilities aggregating to Rs. 21 crores to P.C. Dey & Son…
- **2017-08-07 — Sanction of C…**: Indian Bank sanctioned a car loan of Rs. 23,30,000 to P.C. Dey & Son Distributors Private…

## 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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