# In the matter of Vysali Pharmaceuticals Ltd.

> NCLT judgment dated 2023-10-13. Citation: TCN-2023-NCLT-01248. The case involves a petition filed by the Financial Creditor, M/s. Kerala State Industrial…

- **Court:** NCLT
- **Order date:** 13 Oct 2023
- **Citation:** TCN-2023-NCLT-01248
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vysali-pharmaceuticals-ltd-668fee41

## Summary

### Background

The case involves a petition filed by the Financial Creditor, M/s. Kerala State Industrial Development Corporation Ltd, against the Corporate Debtor, M/s. Vysali Pharmaceuticals Ltd., under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed various credit facilities/loans from the Financial Creditor, supported by loan agreements, hypothecation, and guarantees. The Financial Creditor claimed a default amount of Rs. 59,27,50,820/-. The Corporate Debtor contested the petition, arguing it was barred by limitation and that the Financial Creditor failed to provide a complete record of default.

## Facts

M/s. Kerala State Industrial Development Corporation Ltd. (KSIDC) is the Financial Creditor, and M/s. Vysali Pharmaceuticals Ltd. is the Corporate Debtor. KSIDC filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Vysali Pharmaceuticals due to a default of Rs. 59,27,50,820/-. Vysali Pharmaceuticals had availed multiple credit facilities from KSIDC, including working capital loans and term loans, starting from 1998. These loans were supported by loan agreements, hypothecation, and guarantees. The Corporate Debtor made some payments, including a last remittance of Rs. 47,719/- on 30.06.2019. KSIDC claimed that the Corporate Debtor's account was classified as a

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## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** Section 18 of the Limitation Act states that an acknowledgement of a present subsisting

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**Reasoning:** The NCLT found that the Corporate Debtor had periodically acknowledged the debts before

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**Interpretation:** The interpretation of Section 18 of the Limitation Act allows for the extension

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**Application:** The NCLT applied the ratio to the facts by noting that the Corporate Debtor had

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Respondents:** M/s Vysali…

## Timeline

- **2023-08-02 — Order Res…**: The order was reserved…
- **2023-10-13 — Order Pron…**: The order was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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