# In the matter of Privilege Power and Infrastructure Pvt. Ltd. C.P. 1358 OF 2020

> NCLT judgment dated 2023-02-15. Citation: TCN-2023-NCLT-04590. The Petitioner, Unity Small Finance Bank (formerly Punjab & Maharashtra Co-operative Bank…

- **Court:** NCLT
- **Order date:** 15 Feb 2023
- **Citation:** TCN-2023-NCLT-04590
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/privilege-power-and-infrastructure-pvt-ltd-cp-1358-of-2020-afa57083

## Summary

### Background

The Petitioner, Unity Small Finance Bank (formerly Punjab & Maharashtra Co-operative Bank Ltd.), filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Privilege Power and Infrastructure Pvt. Ltd., for an unresolved financial debt of Rs. 138,48,08,867.90/-. The petition was originally filed by the Administrator of Punjab and Maharashtra Co-operative Bank Limited (PMC), which later merged with Unity Small Finance Bank.

## Facts

Unity Small Finance Bank, formerly Punjab & Maharashtra Co-operative Bank Ltd. ( PMC ), filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Privilege Power and Infrastructure Pvt. Ltd. The petition sought resolution for an unresolved financial debt amounting to Rs. 138,48,08,867.90/-. The original petition was filed by the Administrator of PMC, which subsequently merged with Unity Small Finance Bank following a scheme of amalgamation approved by the Reserve Bank of India (RBI) on January 25, 2022. Unity Small Finance Bank was substituted as the Petitioner via an order dated March 11, 2022. The Corporate Debtor had approached the Petitioner in 2007 for an Overdraft

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## Issues and analysis

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

**Ratio:** The petition is not barred by limitation because the Corporate Debtor's balance

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**Reasoning:** The NCLT noted that the Corporate Debtor had issued balance confirmations on various

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**Interpretation:** The court interpreted Section 17 of the Limitation Act, 1963, to mean that the

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**Application:** Given that the fraud was discovered on December 27, 2019, and the Corporate

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Unity Small…; Unity Small…
- **Respondents:** M/s. Privilege…; M/s. Privilege…; +1 more
- **Advocates:** For the Petitioner…; Nausher Koh…; +2 more

## Timeline

- **March 12, 2007 — Overdraft facility…**: The Petitioner started extending financial assistance to the Respondent via an overdraft…
- **August 31, 2012 — Account classified as…**: The Petitioner classified the Respondent's account as a Non-Performing Asset (NPA) after…

## 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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