UCO Bank Vs Poddar Mech Tech Services Pvt. Ltd. (NCLAT Delhi)
The appeals were filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against orders dated 16.07.2024 passed by the Adjudicating Authority dismissing applications filed under Section 7 of the Code against two corporate guarantors of the principal borrower, Ankit Metal & Power Ltd. The Adjudicating Authority had dismissed the applications as time-barred.
There was a delay of 65 days in refiling the appeals before the Appellate Tribunal. The explanation was that the authorised representative was on leave and registry defects were raised multiple times. As the appeals were initially filed within limitation and the explanation was found sufficient, the delay in refiling was condoned.
On merits, the appellant, a financial creditor, had extended working capital facilities of ₹65 crores to the principal borrower. The account was classified as Non-Performing Asset (NPA) on 28.08.2014. A Master Restructuring Agreement dated 25.09.2014 was executed, but the borrower failed to comply. On 11.08.2017, the principal borrower executed a letter of revival acknowledging the debt. Several payments were made between 2014 and 2018, the last being on 23.08.2018. The borrower also acknowledged the debt in its audited balance sheets for financial years 2019-2020, 2020-2021, and 2021-2022.
