# In the matter of Suman Motels Limited CP (IB) 172-MB-2020

> NCLT judgment dated 2023-02-10. Citation: TCN-2023-NCLT-04624. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04624
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suman-motels-limited-cp-ib-172-mb-2020-6fdd5ed0

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Stressed Assets Stabilization Fund (SASF), the Financial Creditor, against Suman Motels Limited, the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on 04.05.1984. IDBI Bank had sanctioned loan facilities to the Corporate Debtor, which were later assigned to SASF. The Corporate Debtor defaulted on its repayment obligations, leading to various legal actions, including proceedings before the Debt Recovery Tribunal (DRT) and attachment of properties under the Maharashtra Protection of Interest of Depositors (MPID) Act. The Financial Creditor claimed a default date of 01.06.2019, while the Corporate

…

## Facts

IDBI Bank sanctioned loan facilities to Suman Motels Limited (Corporate Debtor). The Corporate Debtor defaulted on repayments. IDBI initiated recovery proceedings, including actions under SARFAESI Act and filing a case before the Debt Recovery Tribunal (DRT). A transfer deed was executed between IDBI and Stressed Assets Stabilization Fund (SASF), assigning the loan to SASF. The Corporate Debtor claimed the debt was discharged through a One Time Settlement (OTS) proposal in 2003, where IDBI took possession of the Corporate Debtor's resorts. The Corporate Debtor also argued that the debt was time-barred, as the last date of loan repayment was around 2001, and the Section 7 petition was filed in 2019. The Financial Creditor (SASF) argued that the Corporate Debtor

…

## Issues and analysis

### Issue 1: Whether the petition under Section 7 …

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

…

**Reasoning:** The NCLT found that the last date of loan repayment was around 2001, and the Section 7

…

**Interpretation:** The NCLT interpreted the provisions of the Limitation Act strictly, holding

…

**Application:** The NCLT applied the ratio to the facts of the case, finding that the Section 7

…

## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Stressed Assets…
- **Respondents:** Suman Motels…

## Timeline

- **1984-05-04 — Incorporation of…**: Suman Motels Limited was…
- **1995-04-28 — Loan Agre…**: A loan agreement was entered into between the Corporate Debtor and Industrial Development…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suman-motels-limited-cp-ib-172-mb-2020-6fdd5ed0