2019 (12) TMI 1583 - AT - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - time limitation - HELD THAT - The Corporate Debtor, Jayant Vitamins Ltd. committed default on 13th September, 1996. Thereafter, Appellant filed suit for recovery which was decreed on 17th October, 2005 and a case for execution is pending. Therefore, it is found that the application under Section 7 was barred by limitation. An application under Section 7 was filed with malicious intent, not for resolution of insolvency or liquidation, as covered under Section 65 of the I B Code - appeal dismissed.

Summary

The National Company Law Appellate Tribunal dismissed the appeal filed by 'International Asset Reconstruction Co. Pvt. Ltd.' against 'Jayant Vitamins Ltd.' for initiation of Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was dismissed as it was found to be barred by limitation and filed with malicious intent, not for resolution of insolvency or liquidation.