A.M.KHANWILKAR,J. - (1.) Two central issues arise for our determination in this appeal, as follows: - (i) Whether an action under Section 7 of the Insolvency and Bankruptcy Code, 2016[1] can be initiated by the financial creditor (Bank) against a corporate person (being a corporate debtor) concerning guarantee offered by it in respect of a loan account of the principal borrower, who had committed default and is not a "corporate person" within the meaning of the Code? (ii) Whether an application under Section 7 of the Code filed after three years from the date of declaration of the loan account as Non-performing Asset[2], being the date of default, is not barred by limitation? [1] for short, "the Code" [2] for short, "NPA"
(2.) Briefly stated, respondent No. 1 bank[3] extended credit facility to M/s. Mahaveer Construction[4], a proprietary firm of the appellant, through two loan agreements in years 2007 and 2008 for a term loan of Rs.9,60,00,000/- (Rupees nine crore sixty lakhs only) and an additional amount of Rs.2,45,00,000/-(Rupees two crore forty-five lakhs only), respectively. The loan amount was disbursed to the Principal Borrower. M/s. Surana Metals Limited[5], of which the appellant is also a Promoter/Director, had offered guarantee to the two loan accounts of the Principal Borrower. The stated loan accounts were declared NPA on 30.1.2010. The Financial Creditor then issued a recall notice on 19.2.2010 to the Principal Borrower, as well as, the Corporate Debtor, demanding repayment of outstanding amount of Rs. 12,35,11,548/- (Rupees twelve crore thirty-five lakhs eleven thousand five hundred forty-eight only). [3] for short, "the Financial Creditor" [4] for short, "the Principal Borrower" [5] for short, the "Corporate Debtor"
(3.) The Financial Creditor then filed an application under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993[6] against the Principal Borrower before the Debt Recovery Tribunal[7] at Kolkata. [6] for short, "the 1993 Act" [7] for short, "DRT" ;