# In the matter of Sri Krishna Stockist & Traders Pvt. Ltd.

> NCLT judgment dated 2025-08-20. Citation: TCN-2025-NCLT-01239. Canara Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 20 Aug 2025
- **Citation:** TCN-2025-NCLT-01239
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/sri-krishna-stockist-traders-pvt-ltd-0d3148ff

## Summary

### Background

Canara Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Sri Krishna Stockist & Traders Pvt Ltd due to a default of Rs.579,89,30,157.14 as of 01.01.2025. The account was classified as NPA on 31.08.2017.

## Facts

Canara Bank, the Financial Creditor, filed a petition under Section 7 of the IBC to initiate CIRP against M/s. Sri Krishna Stockist & Traders Pvt Ltd.

The claimed default amount was Rs.579,89,30,157.14 as on 01.01.2025, and the date of default was 31.08.2017, when the loan account was classified as NPA.

The Corporate Debtor had availed various credit facilities, including working capital, from the Financial Creditor pursuant to a sanction letter dated 19.01.2014.

The loan facilities were secured by a Common Hypothecation Agreement dated 13.02.2014 and a Guarantee Agreement of the same date, guaranteed by Shri Thota Kanna Rao and Smt. Thota Venkata Ramana.

The Financial Creditor initiated proceedings under the SARFAESI Act and issued a demand notice dated 08.11.2017.

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## Issues and analysis

### Issue 1: Whether the Application falls …

**Ratio:** The limitation period is three years from the date of NPA declaration. However, OTS

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**Reasoning:** The loan accounts were classified as NPA on 31.08.2017, and the initial limitation period

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**Interpretation:** The Adjudicating Authority interpreted the relevant provisions of the

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**Application:** Since the petition was e-filed on 28.02.2025, the Adjudicating Authority

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## Parties

- **Judges:** UMESH KUMAR…; KISHORE VEMULAPALL…
- **Appellants:** Canara…
- **Respondents:** M/s. Sri Krishna…
- **Other parties:** Amara…; Thota Kan…; +2 more
- **Advocates:** Dishit Bhattacharj…

## Timeline

- **2025-02-28 — E-filing of P…**: The instant Petition has been e-filed on…
- **2025-03-07 — Filing of Phys…**: The physical copy was filed on…

## 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)

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