# Punjab National Bank vs. Binani Industries Ltd.

> NCLT judgment dated 13 Nov 2025. Citation: TCN-2025-NCLT-01868. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Nov 2025
- **Citation:** TCN-2025-NCLT-01868
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/punjab-national-bank-vs-binani-industries-ltd-f820dd57

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Binani Industries Limited, the Corporate Debtor, due to outstanding financial debt.

## Facts

Punjab National Bank, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 to initiate CIRP against Binani Industries Limited.

The Financial Creditor had advanced a loan amount of Rs. 220 crores to BIL Infratech Limited, a wholly-owned subsidiary of Binani Industries Limited.

Binani Industries Limited provided a letter of comfort favoring the Financial Creditor on January 6, 2012.

The Corporate Debtor confirmed the correctness of the debit balance with the Financial Creditor for an amount of Rs. 28,96,43,505.44 in Cash Credit Account and bank guarantee for an amount of Rs. 32,77,88,154 outstanding as on 31st August 2019.

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## Issues and analysis

### Issue 1: Whether the debt is time-barred and if there is a …

**Ratio:** The plea of the Corporate Debtor that the debt is time-barred and there is no guarantee

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**Reasoning:** The Corporate Debtor executed letters of comfort and acknowledgment of debt,

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**Interpretation:** The Tribunal interpreted the documents as an acknowledgement of the debt by the

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**Application:** The Tribunal concluded that the debt was not time-barred, and the Corporate

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## Parties

- **Judges:** Labh S…; Rekha Kantilal…
- **Appellants:** Punjab National…
- **Respondents:** Binani Industries…
- **Other parties:** Insolvency and…; Corporate…; +5 more
- **Advocates:** Jishnu Cho…; A. R…; +1 more

## Timeline

- **2012-01-06 — Letter of C…**: The Corporate Debtor submitted a letter of…
- **2020-08-03 — Revival L…**: BIL Infratech Limited executed a revival letter acknowledging its liability towards the…

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