# In the matter of Rachet Laboratories Limited Company Petition No. (IB)-82 (ND)-2021

> NCLT judgment dated 2022-03-14. Citation: TCN-2022-NCLT-03768. Intec Capital Limited, a Non-Banking Financial Company (NBFC), filed an application under…

- **Court:** NCLT
- **Order date:** 14 Mar 2022
- **Citation:** TCN-2022-NCLT-03768
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rachet-laboratories-limited-company-petition-no-ib-82-nd-2021-c1a2badd

## Summary

### Background

Intec Capital Limited, a Non-Banking Financial Company (NBFC), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ratchet Laboratories Limited, the corporate debtor. The application was based on a loan agreement where Ratchet Laboratories defaulted on payments. The loan application was filed in March 2013, sanctioned on 18.03.2013, and a loan agreement was executed on 30.03.2013. The applicant recalled the loan via a notice dated 06.05.2015 and initiated arbitration, resulting in an arbitral award on 26.02.2016. The application claims a default of Rs. 14,92,24,164/- as of 31.12.2020.

## Facts

Intec Capital Limited, an NBFC, extended a loan to Ratchet Laboratories Limited. The loan application was filed in March 2013 and sanctioned on 18.03.2013. A loan agreement was executed on 30.03.2013. The corporate debtor defaulted on loan payments. The applicant recalled the loan on 06.05.2015 and initiated arbitration, which resulted in an arbitral award in favor of the applicant on 26.02.2016. The last transaction in the loan account was a cheque that bounced on 17.01.2018. The applicant filed an application under Section 7 of the IBC in 2021, claiming a default of Rs. 14,92,24,164/- as of 31.12.2020. The applicant also submitted a record of default to an Information Utility, which indicated a date of default. The key fact is the date of default, which determines

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is barred by …

**Ratio:** Section 7 of the I&B Code requires an application to be filed within the limitation

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**Reasoning:** The court reasoned that the date of default for filing the petition under Section 7 of

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**Interpretation:** The interpretation of Section 7 of the I&B Code and the Limitation Act is

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

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## Parties

- **Judges:** DHARMINDER…; Narender Kumar…
- **Appellants:** Intec Capital…
- **Respondents:** RATCHET LABORATORI…

## Timeline

- **2013-03-01 — Loan Appli…**: Corporate Debtor filed loan…
- **2013-03-18 — Loan San…**: Loan sanctioned by applicant vide…

## 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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