# In the matter of Priyaranjani Fibres Limited CP (IB) No. 574-7-HDB-2019

> NCLT judgment dated 2023-03-24. Citation: TCN-2023-NCLT-04074. The case pertains to a petition filed by Stressed Assets Stabilization Fund (Financial…

- **Court:** NCLT
- **Order date:** 24 Mar 2023
- **Citation:** TCN-2023-NCLT-04074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/priyaranjani-fibres-limited-cp-ib-no-574-7-hdb-2019-4e5c0930

## Summary

### Background

The case pertains to a petition filed by Stressed Assets Stabilization Fund (Financial Creditor) under Section 7(2) of the Insolvency & Bankruptcy Code, 2016, read with Rule 34 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against Priyaranjani Fibres Limited (Corporate Debtor). The Financial Creditor alleges non-payment of Rs. 729,19,41,714/- (Rupees Seven Hundred and Twenty Nine Crores Nineteen Lakhs Forty One Thousand Seven Hundred and Fourteen Only), including interest, which was due and payable as of 01.07.2019. The Corporate Debtor contested the application, primarily on the ground of limitation, arguing that the application was filed after the lapse of the

…

## Facts

The Stressed Assets Stabilization Fund (SASF) filed a petition under Section 7(2) of the Insolvency & Bankruptcy Code, 2016, against Priyaranjani Fibres Limited, claiming a default of Rs. 729,19,41,714/- as of 01.07.2019. IDBI Bank had sanctioned a term loan of Rs. 990 lakhs to the Corporate Debtor on 15.09.1994, secured by movable and immovable properties. IDBI Bank filed O.A No.373/2007 before DRT-2 Chennai for recovery of Rs. 49,77,88,997-79 ps against the Corporate Debtor on 10.09.2009, and a Recovery Certificate in DRC No.116/2009 was issued on 19.11.2009. The Corporate Debtor filed a reference with the Board for Industrial and Financial Reconstruction (BIFR) in 2001, which declared the Corporate Debtor as a Sick Industry on 27.12.2004. The Corporate Debtor

…

## Issues and analysis

### Issue 1: Whether the debt under the present company petition is …

**Ratio:** The period of limitation for initiating proceedings under Section 7 of the IBC, based on

…

**Reasoning:** The NCLT reasoned that the Corporate Debtor's requests for One Time Settlement (OTS)

…

**Interpretation:** The NCLT interpreted Section 18 of the Limitation Act, 1963, to mean that any

…

**Application:** The NCLT applied the ratio to the facts of the case, noting that the Corporate

…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Stressed Assets…
- **Respondents:** Priyaranjani…; Priyaranjani…

## Timeline

- **1994-09-15 — Loan Sanc…**: IDBI Bank sanctioned a term loan of Rs.…
- **1997-04-01 — Date of D…**: Date of default by the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/priyaranjani-fibres-limited-cp-ib-no-574-7-hdb-2019-4e5c0930