# In the matter of J S DESIGNER LIMITED

> NCLT judgment dated 2025-11-20. Citation: TCN-2025-NCLT-01678. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Nov 2025
- **Citation:** TCN-2025-NCLT-01678
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/j-s-designer-limited-85963967

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Central Bank of India, a Financial Creditor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/S. JS Designer Limited, the Corporate Debtor, due to a default in payment.

## Facts

Central Bank of India filed an application under Section 7 of the IBC against M/S. JS Designer Limited.

The Corporate Debtor defaulted on a payment of Rs. 20,46,15,294.

The Corporate Debtor availed working capital credit facilities under a consortium arrangement.

The Corporate Debtor executed various financing and security documents, including a Working Capital Consortium Agreement and a Joint Deed of Hypothecation.

The Corporate Debtor defaulted on 30.12.2017, and the loan was declared as NPA on 30.03.2018.

The Respondent vide its OTS Proposal has unequivocally admitted its liability and has promised to discharge the said debt.

The petition was filed on 13.05.2024.

The Loan Account was declared as a NPA on 30.03.2018 by the Financial Creditor.

…

## Issues and analysis

### Issue 1: Whether the OTS proposals made by the Corporate Debtor constitute a fresh promise to pay within the …

**Ratio:** Section 25(3) of the Indian Contract Act states that a promise to pay a debt barred by

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**Reasoning:** The Adjudicating Authority considered the OTS proposals made by the Corporate Debtor as a

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**Interpretation:** The OTS proposals, being a statutory contract, give a fresh period of three

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**Application:** The Adjudicating Authority applied the provisions of Section 25(3) of the

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## Parties

- **Judges:** JYOTSNA S…; Anu Jagmoha…
- **Appellants:** Central Bank of…
- **Respondents:** M/S. JS Designer…
- **Other parties:** Sanjay Agg…
- **Advocates:** B.K. Mi…; Ambuj M…; +1 more

## Timeline

- **2024-05-13 — Application…**: The present application was filed on…
- **2017-12-30 — Default…**: The Corporate Debtor has defaulted on…

## 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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