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TMI Blog2019 (11) TMI 1402X X X X Extracts X X X X X X X X Extracts X X X X ..... f multiple parties being involved, insufficient stamp duty, consent of corporate debtor, we note that these issues have been raised earlier in different cases before us and after considering the scheme and objects of Insolvency Bankruptcy Code, 2016 along with specific provisions of Sec.3(6) containing definition of term claim and Sec.238 of Insolvency Bankruptcy Code, 2016, these aspects have not found favour - Accordingly, these aspects are not relevant for petition filed under Sec. 7 of the Insolvency Bankruptcy Code, 2016. Accordingly, this contention of the corporate debtor is also rejected. Time Limitation - HELD THAT:- If averment made before a court of law or any statutory authority cannot be constituted as an acknowledgment of debt then that would render such averment meaningless. Legally such averment bind party making them. Doctrine of estoppel applies without any restriction in commercially and legally. Accordingly, such statement constitute acknowledgment - if such promise is made after expiry of original limitation period also, the limitation period gets extended as condition of acknowledgment before expiration exists only under Sec. 18 of the Limitation Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 bearing WP No.9463(W) of 2016 wherein Honble High Court took note of the fact of negotiations going on between the corporate debtor and respondent bank for repayment including the proposal to sell the mortgaged property to liquidate the outstanding dues. Accordingly, it was pleaded that before the Hon ble High Court the fact of outstanding debt had been admitted and it was also pleaded before the Honble High Court that efforts were going on to pay the outstanding debt. Ld. Counsel, accordingly, contended that this averment also amounted to acknowledgment of debt within the meaning of provision of Sec. 18 of Limitation Act, 1963. 4. Ld. Counsel for the corporate debtor initiated his argument by stating that writ petition was filed by the corporate debtor wherein issue of classification of its NPA was challenged along with validity of notice issued under Sec. 13(2) of the SARFAESI Act, 2002. Against the order of dismissal, an appeal had been filed with Division Bench of the Honble High Court which was pending. In the circumstances, according to the Ld. Counsel, no debt was due and payable and, therefore, at the threshold of law itself, the petition was liable to be dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n filed by the corporate debtor has been dismissed. Thus, at the first instance no merits have been found by the Honble High Court in the claims made by the corporate debtor in such petition though such decision has been challenged in appeal. Be that as it may, we have to see the nature of facilities and terms and conditions related thereto to ascertain whether debt is due or payable or not. Original term loan had been repaid. Thereafter, fund based and non fund based credit facilities have been obtained. The fund based credit facilities comprises of cash credit against hypothecation of stocks and book debts and working capital term loan. Non fund based facilities comprise of letter of guarantee both financial as well as performance guarantee. As per established commercial/ legal convention, cash credit is payable on demand. Hence, irrespective of its classification as NPA and challenge to such action, there cannot be any dispute as regard to such debts becoming due and payable on demand. As far as working capital term loan is concerned, it was payable in quarterly instalment starting from 31/ 12/2009 and, thereafter, this amount is being due and payable. Thus, this aspect also can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent before expiration exists only under Sec. 18 of the Limitation Act, 1963. 12. It reveals from the record that the financial creditor has proposed the name of Shri Bimal Agarwal, Registration No.IBBI/IPA-001/IP-P00268/201718/ 10512 email address [email protected] as Interim Resolution Professional who has has given his consent in Form 2. It further appears that no disciplinary proceedings are pending against the IRP. Accordingly, we approve his appointment as IRP. 13. The petition is otherwise complete in all respects and defect free. ccordingly, we admit the same and order as under:- ORDER i. The application filed by the Financial Creditor under section 7 of the Insolvency Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process against the Corporate Debtor, Silverton Spinners Limited is hereby admitted. ii. We declare a moratorium and public announcement in accordance with Sections 13 and 15 of the IBC, 2016. iii. Moratorium is declared for the purposes referred to in Section 14 of the Insolvency Bankruptcy Code, 2016. The IRP shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process and call for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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