NCLT Admits PNB's ₹294.65 Crore Claim Against TV Vision, Holds OTS Proposals Extend Limitation Period

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 30 July admitted Punjab National Bank's insolvency application against TV Vision Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016, after finding that the loan transaction qualified as a financial debt and that default was established through documentary evidence.

A Bench comprising Judicial Member Nilesh Sharma and Technical Member Sameer Kakar noted that repeated one time settlement (OTS) proposals acknowledging outstanding dues extend the limitation period under Section 18 of the Limitation Act. It held:

"In view of the above discussion, the Applicant has successfully demonstrated the existence of a financial debt as the transaction involves money borrowed against the payment of interest under Section 5(8)(a) of IBC 2016, the occurrence of default, which is way above the threshold as stipulated under Section 4 of the Code (i.e. 1 Crore), and continuing nature of such default supported by clear documentary evidence."

Punjab National Bank had filed the insolvency application against TV Vision Ltd, a media company promoted by the SAB Group, over a default of Rs. 294.65 crore. The Bank stated that it had sanctioned two term loans of Rs. 50 crore each to the company in May and July 2016.

The loan account was classified as a non-performing asset on 31 March 2018, following which the Bank issued a notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act on 22 June 2018.

Although TV Vision Ltd submitted several OTS proposals between 2020 and 2025, no settlement was concluded. The company admitted the default and stated that it had no objection to the initiation of the corporate insolvency resolution process (CIRP), while objecting only to the initially proposed Interim Resolution Professional.

The Tribunal relied on the National Company Law Appellate Tribunal's decision in Dinesh G. Jaiswal v. Punjab National Bank to hold that repeated OTS proposals constituted acknowledgements of debt under Section 18 of the Limitation Act, thereby extending the limitation period.

It also relied on the Supreme Court's decision in Power Trust (Promoter of Hiranmaye Energy Ltd.) v. Bhuvan Madan, IRP, which reiterated that at the admission stage under Section 7 of the IBC, the adjudicating authority is required only to ascertain the existence of financial debt and default.

Accordingly, the NCLT initiated the corporate insolvency resolution process against TV Vision Ltd, declared a moratorium and appointed Alok Kumar Murarka as the Interim Resolution Professional.

For Applicant: Adv. Ms. Purva Narkar i/b Intralegal

For Respondent: Adv. Mr. Prashant Jain a/w Adv. Mr. Revati Nansi.