# 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-03506. The case involves an application filed by State Bank of India (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 28 Mar 2022
- **Citation:** TCN-2022-NCLT-03506
- **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-2019-11f87b97

## Summary

### Background

The case involves an application filed by State Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vijay Trading Company Private Limited (Corporate Debtor). The application was filed due to the Corporate Debtor's default on a financial debt. The Financial Creditor furnished Form No. 1 under Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Corporate Debtor contended that there was a delay of 1450 days in filing the petition and that the petition is barred by limitation.

## Facts

State Bank of India, the 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 total amount of debt granted was Rs. 66.16 crores. The date of default was stated to be 30.04.2013, and the date of NPA was 28.07.2013. The Financial Creditor had granted a loan under an Agreement of Loan cum-Hypothecation dated 28th March, 2013, and a Letter of Arrangement dated 28th March, 2013. The Corporate Debtor contended that there was a delay of 1450 days in filing the petition. The Vindyavasini Group of Companies, which included the Corporate Debtor, had initiated a compromise proposal of Rs. 250 crores on 16.05.2019 for the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is barred by limitation due to a delay of …

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

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**Reasoning:** The court considered the settlement proposal by the Vindyavasini Group of Companies,

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**Interpretation:** Section 18 of the Limitation Act provides an exception to the general rule of

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**Application:** The court applied Section 18 of the Limitation Act to the facts of the case,

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## Parties

- **Judges:** SUCHITRAKAN…; ANURADHA SANJAY…
- **Appellants:** State Bank of…
- **Respondents:** Vijay Trading…
- **Advocates:** Rohit G…; Abdullah Q…; +1 more

## Timeline

- **2013-03-28 — Agreement of Loan…**: The Petitioner and Corporate Debtor entered…
- **2013-03-28 — Letter of Arr…**: The Petitioner and Corporate Debtor…

## 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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