# In the matter of Surya Chakra Power Corporation Ltd. IA No. 78,156 & 370-2019 in CP(IB) No. 421-7-HDB-2018

> NCLT judgment dated 2019-05-14. Citation: TCN-2019-NCLT-03300. The case involves an application filed by a creditor of Surya Chakra Power Corporation Ltd…

- **Court:** NCLT
- **Order date:** 14 May 2019
- **Citation:** TCN-2019-NCLT-03300
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/surya-chakra-power-corporation-ltd-ia-no-78156-370-2019-in-cpib-no-421-7-hdb-201-5e609864

## Summary

### Background

The case involves an application filed by a creditor of Surya Chakra Power Corporation Ltd (Corporate Debtor) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC) read with Rule 11 of NCLT Rules, 2016, seeking condonation of delay in filing a claim with the Resolution Professional (RP). The creditor, State Bank of India, had disbursed loans to the Corporate Debtor under two loan agreements in 2010 and 2011. Disputes arose, leading to arbitration proceedings where awards were passed in favor of the creditor. The RP rejected the creditor's claim because it was filed after the 90-day period from the insolvency commencement date as prescribed by IBBI regulations.

## Facts

State Bank of India (SBI) disbursed loans to Surya Chakra Power Corporation Ltd (Corporate Debtor) under a loan agreement dated October 9, 2010, for Rs. 7,00,00,000, and another loan agreement dated January 15, 2011, for Rs. 4,00,00,000, both carrying an interest rate of 21% p.a. plus an additional 6% p.a. for each day of delay. The Corporate Debtor failed to repay the loan amount and interest after April 30, 2011. SBI initiated arbitration proceedings, resulting in awards in its favor dated July 31, 2017. The Resolution Professional (RP) informed SBI about the commencement of insolvency proceedings against the Corporate Debtor on October 10, 2018, and about the filing of Form C on December 29, 2018. SBI filed its claims in Form C on February 4, 2019, which was within

…

## Issues and analysis

### Issue 1: Whether the tribunal can condone the delay in …

**Ratio:** The NCLT has the power to condone delays by using Rule 11 of NCLT Rules, 2016. The

…

**Reasoning:** The NCLT reasoned that the creditor's delay in submitting the claim was due to a lack of

…

**Interpretation:** Regulation 12(2) of the IBBI (Insolvency Resolution Process for Corporate

…

**Application:** The NCLT applied the principle that procedural provisions are directory and not

…

## Parties

- **Judges:** Ratakonda…
- **Appellants:** State Bank of…
- **Respondents:** Surya Chakra…; Anup Kumar…

## Timeline

- **2010-10-09 — Loan Agre…**: Loan agreement between State Bank of India and Surya Chakra Power Corporation Ltd for Rs.…
- **2011-01-15 — Loan Agre…**: Loan agreement between State Bank of India and Surya Chakra Power Corporation Ltd for Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

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/surya-chakra-power-corporation-ltd-ia-no-78156-370-2019-in-cpib-no-421-7-hdb-201-5e609864