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2024 (11) TMI 212 - AT - IBC


Issues:
1. Application under Section 7 of the Code filed by Punjab National Bank against Walia Traders Limited for resolution of debt.
2. Contention of Respondent that application is barred by limitation under Article 137 of the Limitation Act, 1963.
3. Tribunal's interpretation of limitation period based on the date of default and NPA declaration.
4. Appellant's argument regarding payments made by Respondent in December 2016 acknowledging liability.
5. Maintaining a second CP against the same corporate debtor by the same financial creditor.

Analysis:
1. The Punjab National Bank filed an application under Section 7 of the Code against Walia Traders Limited for the resolution of a substantial amount, including term loans and bank guarantees.
2. Walia Traders Limited contested the application, claiming it was time-barred under Article 137 of the Limitation Act, 1963.
3. The Tribunal referred to the Supreme Court's decision, stating that the limitation period starts from the date of default, which, in the case of NPA declaration, is when the account is classified as NPA.
4. The Appellant argued that payments totaling Rs. 2.65 Cr. made by the Respondent in December 2016 should reset the limitation period, as it acknowledged liability within the limitation timeframe.
5. The issue of maintaining a second CP against the same corporate debtor by the same financial creditor was raised, but the Tribunal found no impediment in allowing it due to different debts and default dates in the two CPs.

Conclusion:
The Tribunal found the appeal meritorious, setting aside the impugned order and remanding the matter back for further proceedings. The parties were directed to appear before the Tribunal, emphasizing the need for an expedited resolution due to the case's age. The Tribunal's decisions on the limitation period and the permissibility of maintaining a second CP were upheld, and the matter was scheduled for further consideration.

 

 

 

 

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