# In the matter of Sri Balaji Cement and Power Limited

> NCLT judgment dated 2025-08-01. Citation: TCN-2025-NCLT-01168. Maximus ARC Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Aug 2025
- **Citation:** TCN-2025-NCLT-01168
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/sri-balaji-cement-and-power-limited-c85c4957

## Summary

### Background

Maximus ARC Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP against Sri Balaji Cement and Power Limited, citing default on financial debt.

## Facts

The Corporate Debtor availed various credit facilities from HDFC Bank Ltd. aggregating to ₹22,04,90,000.

The Corporate Debtor's accounts were classified as Non-Performing Asset (NPA) on 06.12.2022 by HDFC Bank.

HDFC Bank assigned the debt to the Petitioner, Maximus ARC Limited, on 24.07.2024.

The Petitioner issued an Acquisition Notice to the respondent demanding repayment of ₹14,36,36,462.71 as on 31.05.2024.

The Corporate Debtor submitted an OTS proposal on 27.08.2024, which was rejected by the Petitioner on 30.08.2024.

The total amount outstanding as on 30.09.2024 was ₹15,24,59,174.

The Respondent Company was originally promoted by Late Sri Seth Lachhmandas along with his sons Sri Bal Krishan Mankani and Late Sri Ramakrishan Mankani.

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## Issues and analysis

### Issue 1: Whether the difference in the date of default between Form 1 and the RoD issued by NESL vitiates …

**Ratio:** The difference in the date of default does not go to the root of the matter or affect the

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**Reasoning:** The Hon'ble NCLAT in Koncentric Investments Limited and Anr. v. Standard Chartered Bank,

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**Interpretation:** A financial creditor is at liberty to file Section 7 Application but it is

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**Application:** The Adjudicating Authority relied on the NCLAT's decision to conclude that the

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## Parties

- **Judges:** Sunil Kumar…; Radhakrishna…
- **Appellants:** Maximus AR…
- **Respondents:** Balaji Cement &…
- **Other parties:** Maximus ARC…; G. Kishor…; +3 more

## Timeline

- **13.11.2024 — Petition…**: Maximus ARC Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…
- **12.06.2022 — Date of D…**: The default is stated to…

## 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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