The National Company Law Appellate Tribunal(NCLAT) allowed the insolvency proceedings initiated by UCO Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016, as the NCLT was in error in rejecting the petitions on the ground of being time-barred without taking into account the balance sheet acknowledgments and COVID19 limitation relief.
The UCO Bank had availed credit facilities to the principal borrower, whose account was classified as an NPA in 2014. The borrower had signed revival letters as well as acknowledged liabilities in audited balance sheets for several financial years and made part payments thereafter.
Insolvency proceedings were initiated against the principal borrower and corporate…