# In the matter of S. Kumars Nationwide Limited CP (IB) 294-NCLT-MB-2018

> NCLT judgment dated 2018-04-24. Citation: TCN-2018-NCLT-01507. IDBI Bank Limited, acting as a Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 24 Apr 2018
- **Citation:** TCN-2018-NCLT-01507
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-kumars-nationwide-limited-cp-ib-294-nclt-mb-2018-69caf9dc

## Summary

### Background

IDBI Bank Limited, acting as a Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against S. Kumars Nationwide Limited, the Corporate Debtor. The petition was filed due to the Corporate Debtor's default in payment of a financial debt amounting to ₹834,22,96,587/- (principal) with a total default claimed at ₹1680,69,35,210/-. The Debtor Company was incorporated on 28th September 1990 and is engaged in manufacturing of Cotton Fabrics and shirting. The Bank narrated the background of the Debtor Company, including its incorporation, changes in name, and business activities.

## Facts

IDBI Bank Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against S. Kumars Nationwide Limited, the Corporate Debtor, due to a default in payment of a financial debt. The total default claimed was ₹1680,69,35,210/-, including a principal amount of ₹834,22,96,587/-. The Debtor Company was incorporated on 28th September 1990 and is engaged in manufacturing of Cotton Fabrics and shirting. The Financial Creditor presented loan agreements, statements of dues, and security documents as evidence. The Debtor Company had issued a 'revival letter' to Bank of India on 8th May 2013, acknowledging the loan liability. The DRT Karnataka at Bangalore Bench had passed an order on 30 January 2017, acknowledging the

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## Issues and analysis

### Issue 1: Whether the 'default' in repayments is established, justifying the admission of the petition under …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court considered the evidence presented by the Financial Creditor, including loan

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**Interpretation:** The term 'default' under Section 7 of the IBC is interpreted as the non-payment

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**Application:** In this case, the Financial Creditor provided sufficient evidence to establish

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** IDBI Bank L…
- **Respondents:** S. Kumars…

## Timeline

- **1990-09-28 — Incorporation of Debtor…**: S. Kumars Nationwide Limited was…
- **2013-05-08 — Revival L…**: The Debtor Company issued a 'revival letter' to Bank of India on 8th May 2013,…

## 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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