# In the matter of J S DESIGNER LIMITED

> NCLT judgment dated 2025-11-20. Citation: TCN-2025-NCLT-01840. 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-01840
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/j-s-designer-limited-924788e6

## Summary

### Background

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

## Facts

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

The Corporate Debtor defaulted on payment obligations amounting to 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 Joint Deed of Hypothecation.

The Corporate Debtor's loan account was declared as NPA on 30.03.2018.

The Corporate Debtor submitted OTS proposals admitting its liability.

The application was filed on 13.05.2024.

The date of default as stated by Financial Creditor is 30.12.2017.

## Issues and analysis

### Issue 1: Whether the OTS proposal constitutes a fresh promise to pay within the meaning of Section 25(3) of …

**Ratio:** Section 25(3) of the Indian Contract Act makes even a time-barred debt legally

…

**Reasoning:** The Corporate Debtor submitted OTS proposals admitting its liability and promising to

…

**Interpretation:** The OTS proposals are deemed a contract under Section 25(3) of the Indian

…

**Application:** The Adjudicating Authority considered the OTS proposals as a fresh promise to

…

## Parties

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

## Timeline

- **2017-12-30 — Default…**: The Corporate Debtor defaulted…
- **2018-03-30 — NPA Decla…**: The Loan of the Corporate…

## 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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