# In the matter of Sanghvi Land Developers Pvt. Ltd.

> NCLT judgment dated 2024-01-29. Citation: TCN-2024-NCLT-02872. Bank of Baroda filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 29 Jan 2024
- **Citation:** TCN-2024-NCLT-02872
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sanghvi-land-developers-pvt-ltd-37d8ee37

## Summary

### Background

Bank of Baroda filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/S Sanghvi Land Developers Pvt. Ltd., the Corporate Debtor, due to unpaid debt. The Corporate Debtor acted as a guarantor for a loan availed by M/s Brainer Impex Ltd., for which Bank of Baroda had sanctioned a credit facility. The Corporate Debtor mortgaged its immovable properties to secure the loan. The financial creditor filed an Original Application before the Debts Recovery Tribunal (DRT) for recovery of the amount. The DRT allowed the application and issued a Recovery Certificate. The Corporate Debtor filed an Interlocutory Application to set aside an ex parte order, which was later

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## Facts

Bank of Baroda filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against M/S Sanghvi Land Developers Pvt. Ltd. (Corporate Debtor), connected to CP (IB)/1049 (MB)/2019. The Corporate Debtor acted as a guarantor for a loan of Rs. 8,50,00,000/- availed by M/s Brainer Impex Ltd. Bank of Baroda sanctioned the loan on 23 July 2011. The Corporate Debtor executed a Deed of Guarantee on 04.08.2011 and mortgaged its properties. M/s Brainer Impex Ltd. defaulted on repayments. Bank of Baroda filed an Original Application (OA) No. 974 of 2016 before the Debts Recovery Tribunal (DRT), Mumbai, which was allowed on 17.05.2018. The DRT issued a Recovery Certificate on 01.11.2018. The amount

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## Issues and analysis

### Issue 1: Whether the present application is barred by limitation under Section 137 of the Limitation Act, …

**Ratio:** The limitation period for filing an application under Section 7 of the IBC is governed by

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**Reasoning:** The NCLT found that the Petitioner had filed an OA no. 974 of 2016 before DRT on

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**Interpretation:** The Recovery Certificate issued by the DRT on 01.11.2018 provides a fresh cause

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**Application:** The NCLT applied the principle that the application was filed within the

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## Parties

- **Judges:** V. G. Bisht…; SH. PRABHAT…
- **Appellants:** Bank of B…
- **Respondents:** M/S Sanghvi Land…

## Timeline

- **2011-07-23 — Sanction o…**: Bank of Baroda sanctioned a credit facility of Rs. 8,50,00,000/- to M/s Brainer Impex…
- **2011-08-04 — Deed of Gua…**: The Corporate Debtor executed a Deed of…

## 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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