# In the matter of Tangnu Romai Power Generation Private Limited

> NCLT judgment dated 2024-05-06. Citation: TCN-2024-NCLT-01423. 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-01423
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tangnu-romai-power-generation-private-limited-58478429

## Summary

### Background

The petition was filed by Prudent Arc Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Tangnu Romai Power Generation Private Limited, the Corporate Debtor, for a default of Rs. 115.47 crore. The Financial Creditor is an assignee of the debt originally owed to the State Bank of India (SBI). SBI, along with Punjab National Bank and Axis Bank, 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). The Petitioner ARC acquired the debt from SBI through an assignment agreement. The Corporate Debtor argued that it

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## 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 to initiate the Corporate Insolvency Resolution Process (CIRP). The basis for the petition was a default of Rs. 115.47 crore. Prudent Arc Limited is the assignee of a debt originally owed to the State Bank of India (SBI). SBI, along with Punjab National Bank (PNB) and Axis Bank, had extended a term loan of Rs. 224 crore to Tangnu Romai Power Generation Private Limited to set up a hydroelectric power plant. SBI's share of the loan was Rs. 74 crore, PNB's was Rs. 14 crore, and Axis Bank's was Rs. 76 crore. The Corporate Debtor defaulted on the loan, and the account was declared a Non-Performing Asset (NPA) on

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## Issues and analysis

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

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

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**Reasoning:** The court noted that the date of default was 29.12.2016. The Corporate Debtor

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**Interpretation:** The court interpreted Section 18 of the Limitation Act to mean that the

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**Application:** Since the debt was last acknowledged on 23.02.2021, the petition filed on

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## Parties

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

## Timeline

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