# In the matter of BENGAL SHELTER HOUSING DEVELOPMENT LIMITED

> NCLT judgment dated 2025-08-29. Citation: TCN-2025-NCLT-01318. Union Bank of India, as the Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 29 Aug 2025
- **Citation:** TCN-2025-NCLT-01318
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/bengal-shelter-housing-development-limited-1fc533cd

## Summary

### Background

Union Bank of India, as the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bengal Shelter Housing Development Limited, the Corporate Debtor, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor acted as a corporate guarantor for a loan obtained by M/s. Barnaparichay Book Mall Private Limited.

## Facts

Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bengal Shelter Housing Development Limited.

Bengal Shelter Housing Development Limited acted as a corporate guarantor for a loan obtained by M/s. Barnaparichay Book Mall Private Limited.

The total amount claimed to be in default was Rs. 103,52,61,481.58/- as on 09.08.2019.

The loan account of the principal borrower was declared NPA on 31.12.2010.

The Corporate Debtor issued a Revival letter on 30.03.2012, acknowledging its liabilities.

The Consortium of Banks invoked the guarantee on 12.07.2013.

The Corporate Debtor acknowledged their liability in the audited balance sheets for the financial years of 2013-2014, 2014-2015, and 2015-2016.

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## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** Section 18 of the Limitation Act, 1963, allows for the extension of the limitation period

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**Reasoning:** The Tribunal considered the acknowledgements of debt in the Corporate Debtor's balance

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**Interpretation:** The acknowledgements of debt and the Supreme Court's order extended the

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**Application:** The Tribunal held that the petition was not barred by limitation due to the

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## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** Union Bank of…
- **Respondents:** Bengal Shelter…
- **Other parties:** Mahesh Chandra…; Samar…; +34 more
- **Advocates:** Krishnaraj…; Sreenita T…; +5 more

## Timeline

- **2007-11-17 — Development A…**: Bengal Shelter Housing Development Limited entered into a development agreement with…
- **2007-12-27 — Board Reso…**: The corporate debtor resolved to promote a 100% subsidiary to act as a Special Purpose…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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