Atharva Auto Logistics Pvt. Ltd. Vs Intec Capital Ltd. & Anr. (NCLAT Delhi)
NCLAT Delhi dismissed the appeal filed by Atharva Auto Logistics Pvt. Ltd. challenging the order dated 18.02.2022 passed by NCLT, Court-5, Mumbai Bench in CP No. 1258/MB/I&B/2020, whereby the Section 7 application filed by Intec Capital Ltd. as Financial Creditor was admitted. The principal issue before the Appellate Tribunal was whether the Section 7 application filed on 28.08.2020 was barred by limitation because Part-IV of the application mentioned 25.08.2017 as the date of default.
The Appellant contended that limitation had to be computed from the expressly stated date of default, namely 25.08.2017. According to it, since the Section 7 application was filed on 28.08.2020, it was beyond the prescribed three-year limitation period. The Appellant further argued that although the Adjudicating Authority had noticed the relevant facts, it had failed to properly address the consequence of the date of default specifically mentioned in Part-IV of the application.
NCLAT examined the record and noted that the Financial Creditor had filed the record of default maintained by the Information Utility, NESL, as well as the statement of account. These documents disclosed that the Corporate Debtor had made its last repayment of Rs. 2 lakh on 31.07.2018. The Adjudicating Authority had specifically recorded this fact while considering the Section 7 application.
