# In the matter of M/s S.M. PHARMACEUTICALS PRIVATE LIMITED

> NCLT judgment dated 2025-06-16. Citation: TCN-2025-NCLT-00890. State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Jun 2025
- **Citation:** TCN-2025-NCLT-00890
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/ms-sm-pharmaceuticals-private-limited-79856c84

## Summary

### Background

State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against S.M Pharmaceuticals Private Limited.

## Facts

State Bank of India filed a petition under Section 7 of the IBC to initiate CIRP against S.M Pharmaceuticals Private Limited.

S.M Pharmaceuticals Private Limited was incorporated on 19.12.2018.

The Corporate Debtor's business operations had stopped by the time the petition was filed.

The Corporate Debtor availed various loans from Mysore Circle Branch of Petitioner.

The loan was sanctioned against equitable mortgage created by deposit of title deeds of immovable properties.

The account was classified as NPA on 28.02.2023.

The date of default is set to be 31.12.2022.

The outstanding amount was Rs.20,27,76,662.94/- plus interest.

The notice of Petition was sent to the Respondent and its Managing Director through registered post vide order dated 12.11.2024.

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## Issues and analysis

### Issue 1: Whether the Petitioner has made out a case …

**Ratio:** The Petitioner has been able to make out the

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**Reasoning:** The loans were extended by the Petitioner to the Respondent from April, 2021 onwards. The

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**Interpretation:** Section 7 of the IBC allows for the initiation of CIRP upon the occurrence of a

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**Application:** The court applied Section 7 of the IBC to the facts of the case, finding that

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## Parties

- **Judges:** Sunil Kumar…; Radhakrishna…
- **Appellants:** State Bank of…
- **Respondents:** S.M Pharmaceutical…
- **Other parties:** Nethi Mallikarjuna…
- **Advocates:** Chait…

## Timeline

- **2018-12-19 — Incorpor…**: S.M Pharmaceuticals Private…
- **2023-02-28 — NPA Classif…**: The account was classified as…

## 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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