# In the matter of Shree Gajanan Agro Farms Private Limited C.P.(IB)-3639(MB)-2019

> NCLT judgment dated 2022-05-06. Citation: TCN-2022-NCLT-04836. Bank of India Limited filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 May 2022
- **Citation:** TCN-2022-NCLT-04836
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/shree-gajanan-agro-farms-private-limited-cpib-3639mb-2019-75c2142b

## Summary

### Background

Bank of India Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shree Gajanan Agro Farms Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to default in repayment of loans.

## Facts

Bank of India Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016.

Shree Gajanan Agro Farms Private Limited is the Corporate Debtor.

The Corporate Debtor defaulted in repaying ₹19,19,35,805.66 as on 31.03.2015.

The Corporate Debtor approached the Financial Creditor on 21.08.2012 for financial assistance.

The Financial Creditor sanctioned a loan of ₹5,46,00,000 for mango plantation and ₹64,00,000 as crop cash credit loan on 24.12.2012.

The Financial Creditor provided a short-term loan of ₹3,00,00,000 for trading mango on 20.05.2014.

The Corporate Debtor's account was declared as NPA on 31.03.2015.

The Financial Creditor issued a recall notice dated 29.05.2017 to the Corporate Debtor.

…

## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 is barred …

**Ratio:** Section 18 of the Limitation Act, 1963 applies to extend the period of limitation for

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**Reasoning:** The Corporate Debtor acknowledged the debt in writing on 17.01.2017, which extended the

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**Interpretation:** The acknowledgement of debt by the Corporate Debtor creates a fresh period of

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**Application:** The NCLT held that the application was not barred by limitation as the

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Bank of India…
- **Respondents:** Shree Gajanan…
- **Other parties:** Kamal Kishor…
- **Advocates:** Prajakta M…; Shweta Tr…

## Timeline

- **2012-08-21 — Loan Appli…**: Corporate Debtor approached the…
- **2012-12-24 — Loan Sanc…**: Financial Creditor sanctioned a loan of ₹5,46,00,000 for mango plantation and ₹64,00,000…

## 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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