Bank's Section 7 IBC Application Valid: AGM Authorization and OTS Proposals Keep Claim Within Limitation Despite 2013 NPA.

NCLAT dismissed the appeal challenging admission of Sec 7 IBC application. Two key issues were addressed: authorization and limitation period. The Assistant General Manager's filing of Sec 7 application on 28.06.2019 was held valid due to Board's authorization dated 27.06.2019 empowering officers of AGM/DGM rank. On limitation, though NPA was declared on 31.07.2013, multiple OTS proposals between December 2015 to April 2018 kept the claim alive. The application filed in 2019 was within limitation as Corporate Debtor's failure to honor OTS terms extended the limitation period. Both grounds of challenge were rejected, upholding the admission order of the Adjudicating Authority. .....

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