# In the matter of Sheen India Private Limited (IB)-811(ND)-2022

> NCLT judgment dated 2023-01-30. Citation: TCN-2023-NCLT-04850. Union Bank of India, the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 30 Jan 2023
- **Citation:** TCN-2023-NCLT-04850
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sheen-india-private-limited-ib-811nd-2022-2ad4448c

## Summary

### Background

Union Bank of India, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Sheen India Private Limited, the corporate debtor. The corporate debtor had approached the applicant for cash credit facilities, which were granted and subsequently enhanced. The account was declared NPA on 30.08.2017 due to the corporate debtor's failure to pay the outstanding amount.

## Facts

Union Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Sheen India Private Limited (Corporate Debtor). The Corporate Debtor had availed cash credit facilities from the Financial Creditor, which were granted and subsequently enhanced. The account was declared Non-Performing Asset (NPA) on 30.08.2017 due to the Corporate Debtor's failure to repay the outstanding amount. The Financial Creditor claimed Rs. 51,12,91,319.70 as the total amount due as of 30.06.2022. The Corporate Debtor argued that the application was barred by limitation, as it was filed beyond the three-year period from the date of NPA. The Financial Creditor relied on

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** Section 18 of the Limitation Act states that if, before the expiration of the prescribed

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**Reasoning:** The court considered the Supreme Court's judgment in Dena Bank Vs. C. Shivakumar Reddy,

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**Interpretation:** The court interpreted Section 18 of the Limitation Act in conjunction with the

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**Application:** The court found that the OTS proposal was made by the respondent to the

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** Union Bank of…
- **Respondents:** M/s. Sheen India…

## Timeline

- **2013-02-01 — Sanction…**: Cash credit (CC) facility granted to…
- **2013-12-05 — Ad Hoc Fa…**: Ad hoc facility to the extent of Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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