# In the matter of Vidyasagar Prasad vs. UCO Bank & Anr.

> SC judgment dated 2024-10-22. Citation: TCN-2024-SC-00022. The appeal concerns the initiation of Corporate Insolvency Resolution Process (CIRP) against the…

- **Court:** SC
- **Order date:** 22 Oct 2024
- **Citation:** TCN-2024-SC-00022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/vidyasagar-prasad-vs-uco-bank-anr-142176b4

## Summary

### Background

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.

## Facts

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

…

## Issues and analysis

### Issue 1: Whether the entries in the balance sheets of the Corporate Debtor constitute a valid acknowledgment …

**Ratio:** Section 18 of the Limitation Act states that where, before the expiration of the

…

**Reasoning:** The court relied on precedents such as Dena Bank v. C. Shivakumar Reddy and Rajendra

…

**Interpretation:** The court interpreted Section 18 of the Limitation Act liberally in the context

…

**Application:** In this case, the court found that the entries in the balance sheets, coupled

…

## Parties

- **Judges:** PAMIDIGHANTAM SRI…; SANDEEP…
- **Appellants:** VIDYASAGAR…
- **Respondents:** UCO BANK…

## Timeline

- **2010-06-21 — Loan Agre…**: Corporate Debtor availed loan and credit facilities from UCO Bank and other consortium of…
- **2012-08-30 — Loan Agre…**: Corporate Debtor availed loan and credit facilities from UCO Bank and other consortium of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

---

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/vidyasagar-prasad-vs-uco-bank-anr-142176b4