# In the matter of Winsome Yarns Ltd.

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00054. The case involves a petition filed by Edelweiss Asset Reconstruction Company Limited, the…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00054
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/winsome-yarns-ltd-1b986f02

## Summary

### Background

The case involves a petition filed by Edelweiss Asset Reconstruction Company Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Winsome Yarns Ltd., the Corporate Debtor. The Corporate Debtor originally availed loan and cash credit facilities from Punjab National Bank, which later assigned the debt and securities to Edelweiss Asset Reconstruction Company Limited. The account of the Corporate Debtor was declared a Non-Performing Asset (NPA) on 17.04.2014. Several notices were issued under the SARFAESI Act, 2002. The Financial Creditor filed the petition based on a default of Rs. 2,37,49,54,804.29/- with the date of default being 17.01.2014, later considered

…

## Facts

Winsome Yarns Ltd. (Corporate Debtor) availed loan and cash credit facilities from Punjab National Bank (PNB). The account was declared NPA on 17.04.2014. PNB assigned the debt to Edelweiss Asset Reconstruction Company Limited (Financial Creditor) on 10.12.2015. The date of default is considered to be 01.02.2018, when the last payment was made. The total amount in default is Rs. 2,37,49,54,804.29/-. The Corporate Debtor made payments between 31.03.2016 and 01.02.2018. The Financial Creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor objected to the petition, citing limitation, locus standi, and insufficient stamping of the assignment deed. The Corporate Debtor had also preferred C.A. No. 1068 of 2019 placing on

…

## Issues and analysis

### Issue 1: Whether the present application is …

**Ratio:** The period of limitation for an application seeking initiation of CIRP under Section 7 of

…

**Reasoning:** The Adjudicating Authority considered the judgments cited by the Corporate Debtor

…

**Interpretation:** Section 137 of the Limitation Act provides a three-year limitation period for

…

**Application:** The Corporate Debtor's payments until 01.02.2018 reset the limitation period,

…

## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Winsome Yar…
- **Advocates:** Amit Singh…; Sugam…; +3 more

## Timeline

- **2014-04-17 — Account decla…**: The account of the Corporate Debtor…
- **2015-12-10 — Assignment Ag…**: Punjab National Bank assigned the debt to…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/winsome-yarns-ltd-1b986f02