# In the matter of Tangnu Romai Power Generation Private Limited

> NCLT judgment dated 2024-05-06. Citation: TCN-2024-NCLT-01432. The petition was filed by Prudent Arc Limited, the Financial Creditor, under Section 7 of the…

- **Court:** NCLT
- **Order date:** 6 May 2024
- **Citation:** TCN-2024-NCLT-01432
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tangnu-romai-power-generation-private-limited-0661b096

## Summary

### Background

The petition was filed by Prudent Arc Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Tangnu Romai Power Generation Private Limited, the Corporate Debtor, due to a default of Rs. 115.47 crore. The Financial Creditor is an assignee of the debt originally owed to State Bank of India (SBI), Punjab National Bank (PNB), and Axis Bank, who had extended a term loan to the Corporate Debtor for setting up a hydroelectric power plant. The Corporate Debtor defaulted on payments, leading to the account being declared a Non-Performing Asset (NPA) on 29.12.2016. The Petitioner ARC acquired the debt through assignment agreements with SBI, PNB, and Axis Bank.

## Facts

Prudent Arc Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Tangnu Romai Power Generation Private Limited, seeking initiation of CIRP due to a default of Rs. 115.47 crore. The debt originated from a term loan extended to the Corporate Debtor by a consortium of banks, including State Bank of India (SBI), Punjab National Bank (PNB), and Axis Bank, for setting up a hydroelectric power plant. The Corporate Debtor defaulted on payments, and the account was declared an NPA on 29.12.2016. SBI, PNB, and Axis Bank assigned their respective debts to Prudent Arc Limited through assignment agreements dated 08.02.2023, 26.05.2023, and 26.09.2022. The Corporate Debtor acknowledged the debt in its board meeting held on 18.01.2018 and in

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## Issues and analysis

### Issue 1: Whether the petition filed is …

**Ratio:** Section 18 of the Limitation Act, 1963, provides that a fresh period of limitation is

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**Reasoning:** The court noted that the Corporate Debtor acknowledged its debt in the board meeting held

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**Interpretation:** Section 18 of the Limitation Act is applicable to IBC proceedings. The Code

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**Application:** The Corporate Debtor's acknowledgment of debt on 23.02.2021 extended the

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## Parties

- **Judges:** Harnam Singh…; L. N. G…
- **Appellants:** Prudent ARC…
- **Respondents:** Tangnu Romai…; M/s Tangnu Romai…
- **Advocates:** Sumer Sing…; Mr.Sandeep Singh…

## Timeline

- **2016-12-29 — Date of D…**: The Corporate Debtor's account was…
- **2018-01-18 — Acknowledgment…**: The Corporate Debtor acknowledged…

## 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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