# In the matter of Punjab National Bank Vs. Mr. Vijay Sitaram Dandnaik and Anr. Civil Appeal No.2277 of 2021

> SC judgment dated 2022-08-30. Citation: TCN-2022-SC-00028. The case involves an appeal by Punjab National Bank against an order of the National Company Law…

- **Court:** SC
- **Order date:** 30 Aug 2022
- **Citation:** TCN-2022-SC-00028
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/punjab-national-bank-vs-mr-vijay-sitaram-dandnaik-and-anr-civil-appeal-no2277-of-47fae579

## Summary

### Background

The case involves an appeal by Punjab National Bank against an order of the National Company Law Appellate Tribunal (NCLAT). The NCLAT had set aside an order of the National Company Law Tribunal (NCLT) that admitted a petition filed by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC) against M/s Jailaxmi Sugar Products Pvt. Limited, the Corporate Debtor. The NCLAT set aside the NCLT's order on the ground that the application was barred by limitation. The appellant, Punjab National Bank, claims that the Corporate Debtor defaulted in repayment and became a Non-Performing Asset (NPA) on 31.03.2013. The appellant issued a demand notice dated 30.04.2013 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and

…

## Facts

Punjab National Bank (PNB) filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against M/s Jailaxmi Sugar Products Pvt. Limited, the Corporate Debtor. PNB claimed that sanction letters were issued on 07.05.2010 and 28.09.2010, and a term loan was sanctioned. A letter dated 17.09.2011 restructured existing term loans and granted a fresh term loan. The Corporate Debtor defaulted on 31.03.2013, becoming an NPA. PNB issued a demand notice on 30.04.2013 under Section 13(2) of the SARFAESI Act. Balance and Security Confirmation letters were executed on 03.07.2014 and 17.06.2017. PNB, along with Union Bank of India, filed an application in O.A. No.185 of 2014 with DRT, Pune, for a recovery certificate, which was allowed on 01.11.2016. The total

…

## Issues and analysis

### Issue 1: Whether the application filed by Punjab National Bank under Section 7 of the IBC was barred by …

**Ratio:** The period of limitation for an application seeking initiation of CIRP under Section 7 of

…

**Reasoning:** The court reasoned that the application filed by Punjab National Bank under Section 7 of

…

**Interpretation:** The court interpreted Section 7 of the IBC and Article 137 of the Limitation

…

**Application:** The court applied the ratio to the facts of the case and held that the

…

## Parties

- **Judges:** S. ABDUL…; V. RAMASUBR…
- **Appellants:** Punjab National…
- **Respondents:** Jailaxmi Sugar…; VIJAY SITARAM…
- **Other parties:** Over Tu…
- **Advocates:** Dhruv M…; Rahul T…

## Timeline

- **2010-05-07 — Sanction Lette…**: Sanction letters were…
- **2010-09-28 — Sanction Lette…**: Sanction letters were…

## 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)

---

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/punjab-national-bank-vs-mr-vijay-sitaram-dandnaik-and-anr-civil-appeal-no2277-of-47fae579