# In the matter of Sri Venkatramana Spinners Private Limited IBA-216-2019

> NCLT judgment dated 2019-08-09. Citation: TCN-2019-NCLT-01985. The State Bank of India filed an Insolvency and Bankruptcy Application (IBA) under Section 7 of…

- **Court:** NCLT
- **Order date:** 9 Aug 2019
- **Citation:** TCN-2019-NCLT-01985
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-venkatramana-spinners-private-limited-iba-216-2019-1ce01c2b

## Summary

### Background

The State Bank of India filed an Insolvency and Bankruptcy Application (IBA) under Section 7 of the Insolvency & Bankruptcy Code against M/s. Sri Venkataram Spinners Private Limited, the Corporate Debtor, due to a default in repaying an amount of ₹40,02,87,000.16 as of 31.12.2018. The Corporate Debtor had availed financial assistance from the Applicant (State Bank of India) since 06.09.2007, with revisions to the credit facilities on 22.03.2016.

## Facts

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against M/s. Sri Venkataram Spinners Private Limited, citing a default of ₹40,02,87,000.16 as of 31.12.2018. The Corporate Debtor had availed financial assistance from the bank since 06.09.2007, with revisions to credit facilities on 22.03.2016. The bank issued a demand notice under Section 13(1) of the SARFAESI Act and filed OA/42/2018 with DRT, Coimbatore. The bank also provided a balance confirmation dated 04.04.2016 signed by the Corporate Debtor, proving that the claim was within the limitation period. The loan account had become irregular on 27.06.2016 and was classified as a Non-Performing Asset (NPA) on 01.07.2016. The Corporate Debtor provided securities and

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

**Ratio:** The Insolvency and Bankruptcy Code allows for initiation of CIRP upon default in

…

**Reasoning:** The court observed that the Corporate Debtor had defaulted in repaying an amount of

…

**Interpretation:** The term 'default' under IBC refers to

…

**Application:** The court applied the principle that a default in repayment of debt triggers

…

## Parties

- **Judges:** B.S.V. Prakash…; Anil Ku…
- **Respondents:** M/s. Sri Venkatara…

## Timeline

- **2007-09-06 — Initial Financial…**: Corporate Debtor availed financial…
- **2016-03-22 — Revision of Credit…**: Another sanction limit was set, and the entire facility was revised with a fresh sanction…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/sri-venkatramana-spinners-private-limited-iba-216-2019-1ce01c2b