# In the matter of VARIEGATE PROJECTS PRIVATE LIMITED (PART IX)

> NCLT judgment dated 2025-11-12. Citation: TCN-2025-NCLT-01632. Punjab National Bank filed a petition under Section 7 of the IBC against Variegate Projects Pvt…

- **Court:** NCLT
- **Order date:** 12 Nov 2025
- **Citation:** TCN-2025-NCLT-01632
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/variegate-projects-private-limited-part-ix-40721a6b

## Summary

### Background

Punjab National Bank filed a petition under Section 7 of the IBC against Variegate Projects Pvt Ltd due to defaults on credit facilities. The bank had sanctioned credit facilities aggregating to Rs. 65 crores in 2012, which were later reviewed and renewed. Due to persistent defaults, the account was classified as NPA in 2016, leading to the bank initiating recovery proceedings before the DRT.

## Facts

Punjab National Bank sanctioned credit facilities of Rs. 65 crores to Variegate Projects Pvt Ltd in 2012.

The loan account was classified as NPA on 24.03.2016 due to persistent defaults.

Punjab National Bank issued a demand notice under Section 13(2) of the SARFAESI Act on 09.05.2016.

The bank filed an Original Application before the Debts Recovery Tribunal (DRT), which was allowed on 05.04.2019.

A Recovery Certificate was issued by the DRT on 02.05.2019.

Variegate Projects Pvt Ltd submitted One-Time Settlement (OTS) proposals on multiple occasions, including 17.12.2021 and 22.08.2023.

The Company Petition was filed on 17.09.2024.

## Issues and analysis

### Issue 1: Whether the application under Section 7 …

**Ratio:** The cause of action for the present Petition initially arose upon the classification of

…

**Reasoning:** The NCLT relied on the rulings of the Supreme Court in Dena Bank Vs. C. Shivkumar Reddy

…

**Interpretation:** The limitation period is reckoned from the date of issuance of the recovery

…

**Application:** Since the Recovery Certificate was issued on 02.05.2019 and the petition was

…

## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Punjab National…
- **Respondents:** Variegate…; M/s Variegate…
- **Other parties:** Chillale…
- **Advocates:** Peri Ramak…; D. Gopala K…; +1 more

## Timeline

- **2012-02-13 — Sanction of Credit…**: Punjab National Bank sanctioned credit facilities aggregating to Rs. 65 crores to…
- **2016-03-24 — NPA Classif…**: The loan account was classified as…

## 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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