The National Company Law Tribunal (NCLT) Kolkata Bench has admitted a Section 7 insolvency application filed by Bank of India against Sunbeam Dealers Private Limited, holding that a Recovery Certificate issued by the Debt Recovery Tribunal (DRT) constitutes a fresh cause of action and extends the limitation period for initiation of CorporateInsolvency Resolution Process (CIRP).
Bank of India had approached the Tribunal under Section 7 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of CIRP against Sunbeam Dealers Private Limited on account of default in repayment of financial facilities granted to the company.
The bank submitted that an initial cash credit facility of ₹2.5 crore was sanctioned in…