# In the matter of Prabhu Hira Ice & Cold Storage Limited C.P (IB) No. 554-MB-2019

> NCLT judgment dated 2022-08-30. Citation: TCN-2022-NCLT-01214. The case involves a petition filed by Asset Reconstruction Company (India) Limited (ARCIL)…

- **Court:** NCLT
- **Order date:** 30 Aug 2022
- **Citation:** TCN-2022-NCLT-01214
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/prabhu-hira-ice-cold-storage-limited-cp-ib-no-554-mb-2019-7c14e7af

## Summary

### Background

The case involves a petition filed by Asset Reconstruction Company (India) Limited (ARCIL) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Prabhu Hira Ice & Cold Storage Ltd. The petition was filed due to an aggregate debt of Rs. 56,07,02,586 as of 31.12.2018. The Respondent, Prabhu Hira Ice & Cold Storage Ltd, argued that the application was barred by limitation and questioned the locus standi of the Petitioner, ARCIL, as the original lender, Central Bank of India, had assigned the debt to ARCIL.

## Facts

The Asset Reconstruction Company (India) Limited (ARCIL) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Prabhu Hira Ice & Cold Storage Ltd, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The aggregate debt claimed was Rs. 56,07,02,586 as of 31.12.2018. The Respondent had requested the Petitioner (original lender) to grant Term Loan and Working Capital Limit on 19.11.1997, and a sum of Rs.540 Lakh was sanctioned on 23.12.1997. The date of NPA was 06.03.2003. The Respondent argued that the application was barred by limitation, as it was filed in February 2019, more than 16 years after the date of default. The Respondent also challenged the locus standi of the Petitioner, as the debt was assigned from

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** The Limitation Act, 1963, applies to applications filed under Sections 7 and 9 of the

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**Reasoning:** The NCLT observed that the date of default was 06.03.2003, and the application was filed

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**Interpretation:** Section 18 of the Limitation Act states that acknowledgement should be within

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**Application:** In this case, the NCLT found that the acknowledgements relied upon by the

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Asset Reconstructi…
- **Respondents:** Prabhu Hira Ice &…

## Timeline

- **1997-11-19 — Request fo…**: The Respondent requested the Petitioner (original lender) to grant Term Loan and Working…
- **1997-12-23 — Sanction o…**: A sum of Rs.540 Lakh was sanctioned by…

## 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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