# In the matter of Prathyusha Resources & Infra Pvt. Ltd. CP (IB) No. 27-7-AMR-2020

> NCLT judgment dated 2021-11-03. Citation: TCN-2021-NCLT-00595. The case involves a Company Petition filed by State Bank of India (SBI), Stressed Assets…

- **Court:** NCLT
- **Order date:** 3 Nov 2021
- **Citation:** TCN-2021-NCLT-00595
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prathyusha-resources-infra-pvt-ltd-cp-ib-no-27-7-amr-2020-9bfe3912

## Summary

### Background

The case involves a Company Petition filed by State Bank of India (SBI), Stressed Assets Management Branch, Chennai, seeking Corporate Insolvency Resolution Process (CIRP) against Prathyusha Resources & Infra Pvt Ltd. SBI, a commercial bank, had extended credit facilities to Prathyusha Resources, a stevedore agent that diversified into infrastructure projects. The initial loan facility was extended, and subsequent renewals and restructuring attempts occurred. However, Prathyusha Resources defaulted on repayment, leading to its account being declared a Non-Performing Asset (NPA). Despite repeated demands and a One Time Settlement (OTS) offer, the default remained unrectified, prompting SBI to file the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.

## Facts

State Bank of India (SBI), through its Stressed Assets Management Branch, extended credit facilities to Prathyusha Resources & Infra Pvt Ltd. The initial loan sanctioned on 18.03.2011 was for Rs.50 Crores, later increased to Rs.70 Crores on 03.02.2012. The facilities were renewed on 06.04.2013 and 12.03.2014. Prathyusha Resources requested restructuring, which SBI offered on 28.03.2013. The account was declared NPA on 25.03.2015. SBI offered a One Time Settlement (OTS) on 30.03.2019, which was later cancelled on 03.07.2019 due to non-adherence. As of 30.11.2019, the outstanding principle was Rs.63,20,80,661/-, and the interest was Rs.54,34,27,233/-, totaling Rs.117,70,11,609/-. SBI filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, after

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Prathyusha Resources & Infra Pvt Ltd, defaulted on its debt …

**Ratio:** The legal principle is that a default in repayment of debt, as defined under the

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**Reasoning:** The court noted that the Corporate Debtor's account was declared NPA, and despite

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**Interpretation:** The interpretation of 'default' under the IBC encompasses non-payment of debt

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**Application:** The court applied the ratio to the facts, finding that Prathyusha Resources'

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** State Bank of…
- **Respondents:** Prathyusha…

## Timeline

- **2011-03-18 — Loan San…**: Applicant issued the Loan Sanction letter for…
- **2012-02-03 — Loan Exte…**: The overall limit of the Initial Loan Facility…

## 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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