# In the matter of Kotak Mahindra Bank Limited Vs. Kew Precision Parts Private Limited & Ors. Civil Appeal No. 2176 of 2020

> SC judgment dated 2022-08-05. Citation: TCN-2022-SC-00032. Kotak Mahindra Bank Limited, the Appellant Financial Creditor, filed an appeal under Section 62 of…

- **Court:** SC
- **Order date:** 5 Aug 2022
- **Citation:** TCN-2022-SC-00032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/kotak-mahindra-bank-limited-vs-kew-precision-parts-private-limited-ors-civil-app-56183d5c

## Summary

### Background

Kotak Mahindra Bank Limited, the Appellant Financial Creditor, filed an appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016 (IBC), against the judgment and order dated 8th January, 2020, of the National Company Law Appellate Tribunal (NCLAT), New Delhi. The NCLAT had allowed Company Appeal (AT) Insolvency No. 1349 of 2019 filed by the Respondent-Corporate Debtor, against an order dated 6th September, 2019, passed by the Adjudicating Authority/National Company Law Tribunal (NCLT) admitting the application being Company Petition No.(IB) 672/ND/2019 filed by the Appellant Financial Creditor under Section 7 of the IBC for initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The NCLAT held that the Section 7

…

## Facts

The Corporate Debtor was engaged in the manufacture of tempo and tractor components. In 2012-2013, it decided to expand its business and entered into negotiations with bankers for finance. The Appellant Financial Creditor offered financial assistance at a lower interest rate than the existing bankers. From November 2012, the Appellant Financial Creditor sanctioned loan facilities to the Corporate Debtor. Various loan and security documents were executed between the parties in November 2012 and May 2013. In February 2014, the Appellant Financial Creditor sanctioned credit/loan facilities aggregating Rs.2036.00 Lakhs. The Corporate Debtor defaulted in repayment, and the Appellant Financial Creditor declared the account as a non-performing asset (NPA) on 30th September

…

## Issues and analysis

### Issue 1: Whether the application filed by the Appellant Financial Creditor under Section 7 of the IBC was …

**Ratio:** The period of limitation for making an application under Section 7 of the IBC is three

…

**Reasoning:** The NCLAT found that there was no acknowledgment of debt within the period of limitation

…

**Interpretation:** Section 238A of the IBC makes the provisions of the Limitation Act applicable

…

**Application:** In this case, the Corporate Debtor's account was declared NPA on 30th September

…

## Parties

- **Judges:** INDIRA BA…; J.K. MAHE…
- **Appellants:** Kotak Mahindra…
- **Respondents:** KEW PRECISION…

## Timeline

- **2012-01-01 — Corporate Debtor's…**: The Corporate Debtor decided to expand its business and operations and entered into…
- **2012-07-01 — Appellant Financial…**: Employees of the Appellant Financial Creditor approached the Corporate Debtor, offering…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 62 — Appeal to Supreme Court](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-62)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/kotak-mahindra-bank-limited-vs-kew-precision-parts-private-limited-ors-civil-app-56183d5c