# In the matter of TIRUPATI POLYPLAST IRRIGATION SYSTEMS PRIVATE LIMITED

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-00262. Encore Asset Reconstruction Company Private Limited, the Financial Creditor (FC), filed an…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-00262
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tirupati-polyplast-irrigation-systems-private-limited-775dc91c

## Summary

### Background

Encore Asset Reconstruction Company Private Limited, the Financial Creditor (FC), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Tirupati Polyplast Irrigation Systems Private Limited, the Corporate Debtor (CD). The FC claimed a default of Rs.4,34,94,573/- as of 31.12.2021, including principal and interest, based on a loan availed by the CD from Jalgaon Peoples Co-Operative Bank Limited (Original Lender). The CD's account was classified as NPA on 29.07.2019.

## Facts

Encore Asset Reconstruction Company Private Limited (FC) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Tirupati Polyplast Irrigation Systems Private Limited (CD). The CD had availed a loan of Rs.3,40,00,000/- from Jalgaon Peoples Co-Operative Bank Limited (Original Lender), comprising Rs.1,90,00,000/- as Term Loan and Rs.1,50,00,000/- as Cash Credit Facility. The loan application was dated 27.10.2016. The CD executed various documents to secure the credit facilities, including agreements for hypothecation of goods, letters of undertaking, revival letters, guarantee agreements, and a term loan agreement. The CD's loan account was declared as NPA on 29.07.2019. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is barred by limitation under the …

**Ratio:** Section 18 of the Limitation Act, 1963 states that where, before the expiration of the

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**Reasoning:** The NCLT observed that the Application was filed on 28.07.2022, while the date of default

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**Interpretation:** The acknowledgment of debt through OTS proposals extends the limitation period

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**Application:** The CD's OTS proposals, issued before the expiry of the prescribed period of

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Encore Asset…
- **Respondents:** Tirupati Polyplast…

## Timeline

- **2016-10-27 — Loan Appli…**: The Corporate Debtor sought credit facilities from the Original Lender vide its Loan…
- **2019-07-29 — NPA Decla…**: The Corporate Debtor's loan account was declared as Non-Performing Asset (NPA) on…

## 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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