Leela Amritlal Jain vs State Bank of India

30.01.2023: Heard Learned Counsel for the Appellant.

This Appeal has been filed against the Order dated 18^th November, 2022 by which order, National Company Law Tribunal, Mumbai-I has admitted Section 7 Application of I&B Code, 2016 filed by the State Bank of India.

Learned Counsel for the Appellant challenging the order raised two submissions. It is submitted that the Adjudicating Authority committed error in relying on the date of default mentioned in notice under Section 13(2) of SARFAESI Act, 2002 whereas it is not the correct date of default. It is further submitted that acknowledgement given by the Appellant was only to the State Bank of India and the loans for which the Application has been filed were initially for three banks which subsequently got merged with the State Bank of India.

We have heard Learned Counsel for the Appellant and perused the record.

In so far as the submission of Learned Counsel for the Appellant that date of default cannot be 02^nd August, 2015 which is 60 days from the Notice under Section 13(2) of SARFAESI Act, 2002 dated 3^rd June, 2015, there can be no doubt that when default was committed in complying to notice under Section 13(2) of SARFAESI Act, 2002 default was there but in the present case State Bank of India in its Application under Section 7 has claimed the default on the earlier date that is 30^th September, 2014 which was the date of NPA.

We thus proceed to examine the submissions of Learned Counsel for the Appellant on the basis of date of default i.e. 30^th September, 2014. In support of submission of Appellant that Application was barred by time, Learned Counsel for the Appellant has relied on the Letter dated 01^st July, 2016 which was sent by the Corporate Debtor to the State Bank of India. It is submitted that Letter at best is acknowledgement of the dues of the State Bank of India and cannot be read to be acknowledgement with regard to other 2 banks.

Learned Counsel for the Appellant himself has filed the Additional Documents including Letter dated 26^th May, 2016 which is a letter written by the Appellant in which Letter outstanding dues of the banks have been clearly mentioned including State Bank of India, State Bank of Patiala and State Bank of Bikaner at Jaipur which Letter has also been treated as acknowledgement by the Adjudicating Authority. The Application under Section 7 was filed by the State Bank of India on 03^rd April, 2019. The Letter dated 26^th May, 2016 has to be read as an acknowledgement for all the outstanding dues of different bank. The Application was well within three years from the said date. Hence, we see no reason to interfere with the Order impugned.

The Appeal is dismissed.