The appeal concerns the initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor based on an application filed by UCO Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor challenged the CIRP proceedings primarily on the grounds of limitation, arguing that the application was filed beyond the permissible period. The Adjudicating Authority (NCLT, Kolkata Bench) admitted the application, a decision affirmed by the National Company Law Appellate Tribunal (NCLAT). The appellant, the suspended director of the Corporate Debtor, contested these decisions, arguing that there was no clear acknowledgment of debt in the balance sheets to extend the limitation period.
The Corporate Debtor availed loan and credit facilities from UCO Bank and other consortium of banks under agreements dated 21.06.2010, 30.08.2012, 19.07.2012 and 31.12.2012. The Corporate Debtor defaulted on repayment, leading to its account being declared a Non-Performing Asset (NPA) on 05.11.2014. UCO Bank filed an application under Section 7 of the IBC on 13.02.2019 to initiate CIRP. The Corporate Debtor resisted the application, primarily on the grounds of limitation, arguing that the application was filed beyond the three-year period from the date of default. The Adjudicating Authority and NCLAT rejected this argument, finding that the balance sheets of the Corporate Debtor contained acknowledgments of debt, extending the limitation period under Section 18 of the
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Corporate Debtor availed loan and credit…
Corporate Debtor availed loan and credit…
The appeal concerns the initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor based on an application filed by UCO Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor challenged the CIRP proceedings primarily on the grounds of limitation, arguing that the application was filed beyond the permissible period. The Adjudicating Authority (NCLT, Kolkata Bench) admitted the application, a decision affirmed by the National Company Law Appellate Tribunal (NCLAT). The appellant, the suspended director of the Corporate Debtor, contested these decisions, arguing that there was no clear acknowledgment of debt in the balance sheets to extend the limitation period.
The Corporate Debtor availed loan and credit facilities from UCO Bank and other consortium of banks under agreements dated 21.06.2010, 30.08.2012, 19.07.2012 and 31.12.2012. The Corporate Debtor defaulted on repayment, leading to its account being declared a Non-Performing Asset (NPA) on 05.11.2014. UCO Bank filed an application under Section 7 of the IBC on 13.02.2019 to initiate CIRP. The Corporate Debtor resisted the application, primarily on the grounds of limitation, arguing that the application was filed beyond the three-year period from the date of default. The Adjudicating Authority and NCLAT rejected this argument, finding that the balance sheets of the Corporate Debtor contained acknowledgments of debt, extending the limitation period under Section 18 of the
…Corporate Debtor availed loan and credit…
Corporate Debtor availed loan and credit…