VIDYASAGAR PRASAD Vs. UCO BANK

JUDGEMENT

(1.) By the present appeal, the suspended director of the Corporate Debtor assails the order of the NCLAT [National Company Law Appellate Tribunal in Company Appeal (AT) (Insolvency) No. 238 of 2020, dtd. 4/10/2021] affirming the order of the Adjudicating Authority [Adjudicating Authority/National Company Law Tribunal, Kolkata Bench, Kolkata order dtd. 13/12/2019 in CP No. 254/KB/2019] admitting the application under Sec. 7 of IBC [Insolvency and Bankruptcy Code, 2016] for initiating CIRP [Corporate Insolvency Resolution Process] proceedings against the Corporate Debtor.

(2.) The undisputed facts before us are that the Corporate Debtor (respondent No. 2 herein), now represented by its Insolvency Resolution Professional (IRP), availed loan and credit facilities from UCO Bank (respondent No. 1 herein) and other consortium of banks under agreements dtd. 21/6/2010, 30/8/2012, 19/7/2012 and 31/12/2012. The said loan and other credit facilities were availed for funding of Corporate Debtor's Thermal Power Plant.

(3.) The root of the present controversy arose on 13/2/2019 when UCO Bank filed an application under Sec. 7 of the Code to initiate CIRP proceeding against the Corporate Debtor before the Adjudicating Authority (NCLT, Kolkata Bench). These proceedings were resisted by the Corporate Debtor, primarily on the grounds of limitation. Additionally, the Sec. 7 application was also challenged on the grounds that it was not signed by a competent person and also that there is no liability to pay as per the terms of the agreement and as such there is no debt.