Devanathan Ranganathan vs Idbi Bank Limited & Anr

Mr. Devanathan Ranganathan ...Appellant

Vs.

IDBI Bank Limited & Anr. ...Respondents

Present: For Appellant: - Mr. M.K.S Menon and Ms. Diyangna Malik, Advocates.

For Respondents: - None.

O R D E R

23.05.2019─ This appeal has been preferred by the Appellant- Mr.

Devanathan Ranganathan against the order dated 25th February, 2019

passed by the Adjudicating Authority (National Company Law Tribunal),

Division Bench, Chennai, whereby the Adjudicating Authority admitted

the application under Section 7 of the Insolvency and Bankruptcy Code,

2016 ("I&B Code" for short) filed by 'M/s. IDBI Bank Limited'- ('Financial

Creditor').

2. Learned counsel for the Appellant submits that the claim of the

Bank and the date of default both are barred by limitation. However, we

are not inclined to accept such submission.

3. Admittedly, the loan amount of the 'Corporate Debtor' was

classified as 'Non-Performing Assets' (NPA) on 30th June, 2015 in

accordance with the guidelines of the 'Reserve Bank of India'. Even

Contd/-......

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thereafter the 'Corporate Debtor' having not paid back the amount to the

Bank, recall notice dated 13th November, 2015 was sent to the 'Corporate

Debtor' and thereafter, the 'Corporate Debtor' having not repaid the

amount, the application under Section 7 was filed on 24th October, 2018.

4. For counting the period of limitation in filing the appeal under

Section 7, we find that Part II of Third Division of Schedule of Limitation

Act, 1963 i.e. Article 137 is applicable, which reads as follows:

Part II-OTHER APPLICATION Description of application Period of Limitation Time from which period begins to run

137. Any other application for which Three years When the right to no period of limitation is provided apply accrues elsewhere in this division.

5. The 'I&B Code' having come into force since 1st December, 2016

and the application having been filed on 24th October, 2018, we hold

that the application under Section 7 is well within the time and is not

barred by limitation. Further, as we find that the default has occurred

after notice issued on 13th November, 2015 and application having been

filed on 24th October, 2018, we hold that the claim is also not barred by

limitation.

Company Appeal (AT) (Insolvency) No. 507 of 2019 -3-

6. For the reasons aforesaid, we are not inclined to interfere with the

impugned order dated 25th February, 2019. The appeal is accordingly

dismissed. No costs.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice A.I.S. Cheema) Member(Judicial)

(Kanthi Narahari) Member(Technical) Ar/g

Company Appeal (AT) (Insolvency) No. 507 of 2019