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

> NCLT judgment dated 2023-01-30. Citation: TCN-2023-NCLT-04856. 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-04856
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sheen-india-private-limited-ib-811nd-2022-aba19342

## 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 (erstwhile Corporation Bank) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s. Sheen India Private Limited. Sheen India Private Limited had approached Union Bank of India for cash credit (CC) facilities, which were granted initially to the extent of Rs. 2720.56 Lakhs on 01.02.2013 and subsequently enhanced to Rs. 20 Crore. An ad hoc facility of Rs. 400 Crore was also sanctioned on 05.12.2013. The facilities were reviewed on 31.03.2017. The account was declared NPA on 30.08.2017 due to the failure of Sheen India Private Limited to pay the outstanding amount. The total amount claimed as of 30.06.2022 was Rs. 51,12,91,319.70. Sheen India Private Limited submitted an OTS proposal on

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## Issues and analysis

### Issue 1: Whether the present …

**Ratio:** Section 18 of the Limitation Act allows for the extension of the limitation period if

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**Reasoning:** The court observed that the Respondent had submitted an OTS proposal on 16.09.2019, which

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**Interpretation:** Section 18 of the Limitation Act should be interpreted liberally in the context

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**Application:** The OTS proposal submitted by Sheen India Private Limited on 16.09.2019, within

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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 — Cash Credit Facility…**: Union Bank of India granted a cash credit facility to M/s. Sheen India Private Limited to…
- **2013-12-05 — Ad Hoc Facility…**: An ad hoc facility of Rs. 400 Crore was…

## 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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