# In the matter of Punjab National Bank Vs. Lora Mitra Rath, CP (IB) No. 51/CB/2022

> NCLT judgment dated 2023-05-09. Citation: TCN-2023-NCLT-03447. This case involves an application filed by Punjab National Bank (the Creditor) under Section 95…

- **Court:** NCLT
- **Order date:** 9 May 2023
- **Citation:** TCN-2023-NCLT-03447
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/punjab-national-bank-vs-lora-mitra-rath-cp-ae5892c9

## Summary

### Background

This case involves an application filed by Punjab National Bank (the Creditor) under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, to initiate the Insolvency Resolution Process against Smt. Lora Mitra Rath (the Personal Guarantor). The guarantor is in respect of loans availed by M/s MAADURGA THERMAL POWER COMPANY LIMITED, the Corporate Debtor. The corporate debtor was admitted into Corporate Insolvency Resolution Process on 08.06.2018 under section 7 of IBC 2016 by an application filed by SREI Equipment Finance Limited by NCLT-Kolkata and was admitted into liquidation on

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## Facts

M/s MAADURGA THERMAL POWER COMPANY LIMITED (Corporate Debtor) availed financial facilities from the Oriental Bank of Commerce, now merged with Punjab National Bank, to the extent of Rs.8.57 Crore as fresh Term Loan and reviewed the existing Term Loan of Rs.40.00 Crore. Smt. Lora Mitra Rath (Personal Guarantor), the promoter of the corporate debtor, gave personal guarantees as collateral security to secure the loan availed by the corporate debtor. The Guarantor executed the deed of guarantee in favor of Punjab National Bank and other members of the consortium on 10.03.2010 and 30.09.2013. The principal Borrower defaulted in repayment of the dues, resulting in the account being declared as Non-Performing Asset (NPA) by the creditor on 31.12.2014. The personal Guarantor

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95 …

**Ratio:** The limitation period for filing an application under Section 95 of the IBC, 2016, is

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**Reasoning:** The Adjudicating Authority considered the dates of default, acknowledgment of debt, and

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**Interpretation:** The interpretation of the limitation period involves considering the relevant

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**Application:** In this case, the court applied the ratio and reasoning to the specific facts,

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Punjab National…
- **Respondents:** M/s MAADURGA…; LORA MITR…

## Timeline

- **2010-03-10 — Execution of Deed of…**: The Personal Guarantor executed the deed of guarantee in favor of Punjab National Bank…
- **2013-09-28 — Financial Facility…**: M/s Maa Durga Thermal Power Company Ltd. availed financial facility from the Oriental…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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