# In the matter of S.L.S. Power Limited

> NCLT judgment dated 2025-07-22. Citation: TCN-2025-NCLT-01152. Canara Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Jul 2025
- **Citation:** TCN-2025-NCLT-01152
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/sls-power-limited-1af9c32e

## Summary

### Background

Canara Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against SLS Power Limited due to outstanding dues of Rs. 62,55,18,592.72.

## Facts

Canara Bank Limited filed an application under Section 7 of the IBC to initiate CIRP against SLS Power Limited.

The application was filed due to a default of Rs. 62,55,18,592.72, including interest, as of 31.03.2025.

SLS Power Limited argued that the debt was not due due to pending OTS proposals and a Writ Petition against a DRT order.

The loan account was classified as NPA on 02.07.2018.

The Financial Creditor had sanctioned credit facilities aggregating to Rs.23.25 crore to the Corporate Debtor.

The Corporate Debtor had submitted One-Time Settlement (OTS) letters to the Financial Creditor.

The Financial Creditor filed Original Application numbered as 659/2019 before the Hon'ble Debts Recovery Tribunal (DRT) at Visakhapatnam, which is currently pending.

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable given the pending OTS proposals …

**Ratio:** The NCLT held that the application is maintainable because the DRT order was under

…

**Reasoning:** The interim suspension of the DRT order meant it was not in operation. The Corporate

…

**Interpretation:** The NCLT interpreted that the pending Writ Petition and OTS proposals did not

…

**Application:** The NCLT applied the principle that a suspended order cannot be relied upon to

…

## Parties

- **Judges:** UMESH KUMAR…; KISHORE VEMULAPALL…
- **Appellants:** Canara Bank…
- **Respondents:** SLS Power L…
- **Other parties:** Chinnam Poorna…
- **Advocates:** Manav Gecil…; Raja Shekar Rao…

## Timeline

- **25.04.2025 — Application…**: Canara Bank Limited filed an…
- **22.07.2025 — Order Del…**: The NCLT admitted the application and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-amaravati/sls-power-limited-1af9c32e