# In the matter of Sesh Nath Singh & Anr. Baidyabati Sheoraphuli Co-operative Bank Ltd. And Anr.  Civil Appeal No. 9198 OF 2019

> SC judgment dated 2021-03-22. Citation: TCN-2021-SC-00062. This civil appeal arises from a judgment and order passed by the National Company Law Appellate…

- **Court:** SC
- **Order date:** 22 Mar 2021
- **Citation:** TCN-2021-SC-00062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/sesh-nath-singh-anr-baidyabati-sheoraphuli-co-operative-bank-ltd-and-anr-civil-a-a04b922a

## Summary

### Background

This civil appeal arises from a judgment and order passed by the National Company Law Appellate Tribunal (NCLAT), which dismissed a Company Appeal filed by the Appellants. The Appellants challenged an order of the National Company Law Tribunal (NCLT), Kolkata Bench, which admitted an application filed by the Respondent as a Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code (IBC), initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Corporate Debtor was engaged in the export of textile and garments. The Financial Creditor had granted a cash credit facility to the Corporate Debtor. The Corporate Debtor defaulted in repayment, leading to its account being declared a Non-Performing Asset (NPA). The Financial

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## Facts

The Baidyabati Sheoraphuli Co-operative Bank Ltd. (Respondent No. 1), a financial creditor, extended a cash credit facility of Rs. 1,00,00,000/- to Debi Fabtech Private Ltd. (Corporate Debtor). The Corporate Debtor defaulted on repayments, leading the Financial Creditor to declare the account a Non-Performing Asset (NPA) on March 31, 2013. Subsequently, the Financial Creditor initiated proceedings under the SARFAESI Act, issuing a notice under Section 13(2) on January 18, 2014, demanding Rs. 1,07,88,536.00. The Corporate Debtor challenged these notices in the Calcutta High Court under Article 226 of the Constitution of India. The High Court granted an interim order on July 24, 2017, restraining the Financial Creditor from taking further steps under the SARFAESI Act,

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## Issues and analysis

### Issue 1: Whether delay beyond three years in filing an application under Section 7 of IBC can be condoned, …

**Ratio:** Section 5 of the Limitation Act does not mandate a formal application for condonation of

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**Reasoning:** The court reasoned that Section 5 enables the court to admit an application or appeal if

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**Interpretation:** This clarifies that the absence of a formal application under Section 5 of the

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**Application:** In this case, the court considered whether the delay in filing the Section 7

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## Parties

- **Judges:** INDIRA BA…
- **Appellants:** Sesh Nath…
- **Respondents:** Debi Fabtech…; Baidyabati…
- **Other parties:** Affir…

## Timeline

- **2012-02-08 — Request for Cash Credit…**: Corporate Debtor requested the Financial Creditor for a cash credit facility of…
- **2012-02-15 — Sanction of Cash Credit…**: Financial Creditor granted Cash Credit Facility of Rs.1,00,00,000/- to the Corporate…

## 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)

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