# In the matter of S.K. Elite Industries (India) Limited CP (IB) 1474-MB-2019

> NCLT judgment dated 2021-05-07. Citation: TCN-2021-NCLT-02177. Piramal Capital and Housing Finance Limited filed a Company Petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 7 May 2021
- **Citation:** TCN-2021-NCLT-02177
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sk-elite-industries-india-limited-cp-ib-1474-mb-2019-a5c0ea76

## Summary

### Background

Piramal Capital and Housing Finance Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against SK Elite Industries (India) Limited, alleging default in payment of a Financial Debt. The Petitioner, as the successor-in-interest of Piramal Finance Limited, had sanctioned term loans to the Respondent and its sister concern, SK Wheels Private Limited. These loans were secured through mortgages, personal guarantees, and other agreements. The Respondent allegedly defaulted on repayments, leading to the filing of the petition.

## Facts

Piramal Capital and Housing Finance Limited (Petitioner) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against SK Elite Industries (India) Limited (Respondent) for defaulting on a financial debt. The Petitioner, as the successor-in-interest of Piramal Finance Limited, had sanctioned term loans of Rs. 47,00,00,000/- to the Respondent and Rs. 15,00,00,000/- to SK Wheels Private Limited (sister concern) on 29.08.2017. These loans were secured through a Deed of Mortgage dated 24.08.2017, personal guarantees by Mr. Anil Kumar, Mr. Akshit Kumar, and Mrs. Manjusha Kumar (promoters of the Respondent), a Demand Promissory Note dated 22.08.2017, a Share Pledge Agreement dated 21.08.2017, and a Security Trustee Agreement dated 21.08.2017. The

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## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority found that the Respondent was in default of a debt due and

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**Interpretation:** Section 7 provides a mechanism for financial creditors to trigger the

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**Application:** The court applied Section 7 to the facts, finding that the Respondent had

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## Parties

- **Judges:** Janab Mohammed…; Ravikumar…; +1 more
- **Appellants:** PIRAMAL CAPITAL &…
- **Respondents:** SK Elite Industrie…

## Timeline

- **1996-02-23 — Incorporation of…**: SK Elite Industries (India) Limited incorporated with the Registrar of Companies,…
- **2017-07-12 — Sanction…**: Piramal Finance Limited sanctioned the term loan to the Respondent and its sister…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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