# In the matter of Punjab National Bank Vs. Suryakanta Acharya, CP (IB) No. 50/CB/2022

> NCLT judgment dated 2023-05-09. Citation: TCN-2023-NCLT-03442. The case pertains to an application filed by Punjab National Bank (the Creditor) under Section…

- **Court:** NCLT
- **Order date:** 9 May 2023
- **Citation:** TCN-2023-NCLT-03442
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/punjab-national-bank-vs-suryakanta-acharya-cp-74f46fad

## Summary

### Background

The case pertains to an application filed by Punjab National Bank (the Creditor) under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Process for Personal Guarantors to Corporate Debtors) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Suryakanta Acharya (the Personal Guarantor). The respondent stood as a guarantor for 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 and was later admitted into liquidation on

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## Facts

Punjab National Bank (PNB) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) against Suryakanta Acharya, the personal guarantor, for loans availed by M/s MAADURGA THERMAL POWER COMPANY LIMITED. The corporate debtor, Maa Durga Thermal Power Company Ltd, was admitted into Corporate Insolvency Resolution Process on 08.06.2018 under section 7 of IBC 2016 and later admitted into liquidation on 25.06.2019. The corporate debtor had availed financial facility from the Oriental Bank of Commerce (now merged with PNB) to the extent of Rs.8.57 Crore as fresh Term Loan and reviewed the existing Term Loan of Rs.40.00 Crore. The personal guarantor provided a personal guarantee as collateral security. The principal borrower defaulted in repayment,

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## Issues and analysis

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

**Ratio:** The principle of limitation dictates that legal actions must be initiated within a

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**Reasoning:** The court considered the date the principal borrower's account was declared NPA

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

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**Application:** The court applied the principle of limitation and the interpretation of the SUO

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## Parties

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

## Timeline

- **2014-12-31 — Account decla…**: The account of the principal borrower was declared as Non-Performing Asset (NPA) by the…
- **2018-03-31 — Debt Acknow…**: The corporate debtor acknowledged the debt due to the financial creditor vide letter…

## 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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