# In the matter of Sri Vasavi Industries Limited TCP (IB) No.40-7-ANR-2019 in CP (IB) No. 325-7-HDB-2019

> NCLT judgment dated 2019-10-28. Citation: TCN-2019-NCLT-00793. The case involves a petition filed by Stressed Assets Stabilization Fund, the financial…

- **Court:** NCLT
- **Order date:** 28 Oct 2019
- **Citation:** TCN-2019-NCLT-00793
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-vasavi-industries-limited-tcp-ib-no40-7-anr-2019-in-cp-ib-no-325-7-hdb-2019-e9859ee9

## Summary

### Background

The case involves a petition filed by Stressed Assets Stabilization Fund, the financial creditor, against Sri Vasavi Industries Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). Sri Vasavi Industries Limited had availed credit facilities from Industrial Development Bank of India (IDBI), which were later transferred to the petitioner. The respondent defaulted on repayments, leading to the current application for CIRP.

## Facts

Sri Vasavi Industries Limited was originally incorporated as a Private Limited Company on 1985-01-22 and later converted into a Public Limited Company on 1994-04-19. The company's name was changed to Sri Vasavi Industries Limited on 1998-01-15. The company engaged in manufacturing, producing, and trading various metals. It obtained credit facilities from IDBI, including three term loans totaling Rs. 4000 Lakhs. The respondent defaulted on loan repayments. IDBI transferred the loans to Stressed Assets Stabilization Fund on 2004-09-30. IDBI had filed an Original Application (O.A. No.153/2004) before DRT-I, Hyderabad, for debt recovery. The DRT-I allowed the application ex parte on 2017-11-06, ordering recovery of Rs. 58,30,83,741/- with interest. The petitioner filed the

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## Issues and analysis

### Issue 1: Whether the Petition is …

**Ratio:** The ratio is based on the interpretation of Section 7 of the IBC and Article 137 of the

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**Reasoning:** The court reasoned that the debt became due and payable on 2017-11-06, based on the order

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**Interpretation:** The interpretation involves determining when the cause of action arose for the

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**Application:** The ratio and reasoning were applied to the facts by considering the date of

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## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** Stressed Assets…
- **Respondents:** Vasavi Industries…

## Timeline

- **1985-01-22 — Incorpor…**: Sri Vasavi Industries Limited was originally…
- **1994-04-19 — Conversion to Public…**: Sri Vasavi Industries Limited was…

## 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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