# In the matter of Vijay Trading Company Private Limited C.P. No. 4658-MB-I&B-2019

> NCLT judgment dated 2022-03-28. Citation: TCN-2022-NCLT-03509. The State Bank of India, as a Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 28 Mar 2022
- **Citation:** TCN-2022-NCLT-03509
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vijay-trading-company-private-limited-cp-no-4658-mb-ib-2019-101313a6

## Summary

### Background

The State Bank of India, as a Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vijay Trading Company Private Limited, the Corporate Debtor, due to a default on a financial debt. The application was filed after a delay of 1450 days, which the petitioner sought to condone. The Corporate Debtor argued that the application was barred by limitation. The Financial Creditor had granted loan under Agreement of Loan cum hypothecation/ letter of arrangement dated 28.03.2013. A letter of confirmation was issued for creation of mortgage on 30.03.2013. Thereafter, the memorandum recording creation of mortgage, by deposit of title deeds, dated 28.03.2013 was issued. The date of default was 30.04.2013, and the date of NPA

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## Facts

State Bank of India (SBI) extended financial facilities to Vijay Trading Company Private Limited. The total outstanding debt amounted to Rs. 66.16 crores as of 07.11.2019. The date of default was 30.04.2013, and the date of NPA was 28.07.2013. SBI filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Vijay Trading Company Private Limited. There was a delay of 1450 days in filing the application. The Corporate Debtor contended that the application was barred by limitation. The Vindyavasini Group of Companies, which includes the Corporate Debtor, proposed a compromise settlement of Rs. 250 crores on 16.05.2019. SBI issued a recall notice on 28.05.2014 and a notice under the Securitisation Act on 28.07.2013. The debt

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is barred by …

**Ratio:** Section 18 of the Limitation Act, 1963, states that an acknowledgment of liability in

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**Reasoning:** The court reasoned that the settlement proposal made by the Vindyavasini Group of

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**Interpretation:** Section 18 of the Limitation Act is interpreted to mean that any written

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**Application:** The court applied this principle to the facts, noting that the settlement

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## Parties

- **Judges:** SUCHITRAKAN…; ANURADHA SANJAY…
- **Appellants:** State Bank of…
- **Respondents:** Vijay Trading…

## Timeline

- **2013-03-28 — Agreement of Loan…**: The Petitioner entered into an Agreement of Loan cum- Hypothecation and Letter of…
- **2013-03-30 — Letter of Conf…**: A letter of confirmation was…

## 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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