# In the matter of GREEN VALLEY PLYWOOD LIMITED

> NCLT judgment dated 2025-08-20. Citation: TCN-2025-NCLT-01219. Indian Overseas Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Aug 2025
- **Citation:** TCN-2025-NCLT-01219
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/green-valley-plywood-limited-18f83425

## Summary

### Background

Indian Overseas Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Green Valley Plywood Limited for a default of Rs. 490,02,11,057.72 as of 20.03.2024.

## Facts

Indian Overseas Bank filed a petition under Section 7 of the IBC against Green Valley Plywood Limited.

The alleged default amount was Rs. 490,02,11,057.72 as of 20.03.2024.

The Corporate Debtor's account was classified as NPA on 31 October 2011.

The DRT passed a decree on 9 October 2017, and a recovery certificate was issued on the same day.

The Corporate Debtor acknowledged its debt in its annual financial statements for the financial years 2017-18, 2018-19, 2019-20 and 2020-21.

The Financial Creditor relied on a Recovery Certificate dated 09.10.2017 as a fresh cause of action.

The Corporate Debtor disputed the validity and authentication of the Record of Default filed with NeSL.

The Adjudicating Authority admitted the petition and initiated CIRP.

## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** The issuance of a Recovery Certificate by DRT constitutes a fresh cause of action, and

…

**Reasoning:** The Adjudicating Authority relied on the Recovery Certificate dated 09.10.2017 and the

…

**Interpretation:** The limitation period is extended by three years from the date of each

…

**Application:** The petition was filed on 21.07.2024, which is within the extended limitation

…

## Parties

- **Judges:** JYOTSNA S…; Anu Jagmoha…
- **Appellants:** Indian Overseas…
- **Respondents:** Green Valley…
- **Other parties:** Desh De…
- **Advocates:** Rakshit…; Amit D…

## Timeline

- **2025-08-20 — Order Da…**: Date of the order…
- **2011-10-31 — NPA Decla…**: Account of Corporate Debtor…

## 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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