# In the matter of Sohrab Spinning Mills Limited CP (IB) No. 140-Chd-Pb-2020

> NCLT judgment dated 2023-02-22. Citation: TCN-2023-NCLT-04496. The petition was filed by Punjab National Bank, a financial creditor, under Section 7 of the…

- **Court:** NCLT
- **Order date:** 22 Feb 2023
- **Citation:** TCN-2023-NCLT-04496
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sohrab-spinning-mills-limited-cp-ib-no-140-chd-pb-2020-73551cbd

## Summary

### Background

The petition was filed by Punjab National Bank, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Sohrab Spinning Mills Limited, the corporate debtor, due to a default in payment of financial debt.

## Facts

Punjab National Bank, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Sohrab Spinning Mills Limited, the corporate debtor. The petition was signed by Sh. Hassan Ali, Senior Manager and Attorney for Punjab National Bank, and included an affidavit verifying its contents. The corporate debtor was incorporated on July 18, 1989, under the Companies Act, 1956, with its registered office in Malerkotla, Punjab, and a second address in Ludhiana, Punjab, establishing the Chandigarh Bench's jurisdiction. The corporate debtor repeatedly approached

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## Issues and analysis

### Issue 1: Whether the present application is …

**Ratio:** The application was filed within the three-year limitation period from the date of

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**Reasoning:** The date of default was 05.07.2017, when the corporate debtor's account was classified as

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**Interpretation:** The court interpreted the limitation period for filing an application under

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**Application:** Since the petition was filed in January/February 2020, and the default occurred

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Punjab National…
- **Respondents:** Sohrab Spinning…; M/s Sohrab…
- **Advocates:** For the Petitioner…; For the Respondent…

## Timeline

- **December, 1997 — Initial CC Limit…**: Punjab National Bank sanctioned a CC Limit…
- **July 5, 2017 — Account Classified as…**: The corporate debtor's account was classified as a Non-Performing Asset (NPA) due to…

## 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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