# In the matter of Sysco Industries Ltd. CP (IB) No. 62/7/NCLT/AHM/2021

> NCLT judgment dated 2021-09-08. Citation: TCN-2021-NCLT-01152. The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by State…

- **Court:** NCLT
- **Order date:** 8 Sept 2021
- **Citation:** TCN-2021-NCLT-01152
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sysco-industries-ltd-cp-ib-no-627ncltahm2021-13f9dec5

## Summary

### Background

The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by State Bank of India against Sysco Industries Ltd, claiming a default of Rs. 90,93,73,389.11 as of 2021-02-28. The account was classified as NPA on 2017-06-30. The Financial Creditor argued that the limitation period was extended due to a proposal submitted by the Corporate Debtor on 2018-03-22, which falls within three years of the NPA date. The Corporate Debtor sought time to reply, but the Bench questioned the maintainability of the application.

## Facts

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sysco Industries Ltd. The claimed default amount was Rs. 90,93,73,389.11 as of 2021-02-28. The account was classified as a Non-Performing Asset (NPA) on 2017-06-30. The Financial Creditor argued that the limitation period to file the application was extended due to a revival proposal submitted by the Corporate Debtor on 2018-03-22. The Corporate Debtor did not file a reply or written submission despite being given opportunities. The debt exceeded the threshold limit for initiating insolvency proceedings. The revival proposal and the debt amount remained uncontroverted by the Corporate Debtor. This lack of contestation was a key factor in the court's decision.

## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 is …

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

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**Reasoning:** The court noted that the debt was more than the threshold limit prescribed for initiating

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

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**Application:** The court applied Section 7 to the facts, finding that the debt exceeded the

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** State Bank of…
- **Respondents:** Sysco Industries…; Sysco Industries…

## Timeline

- **2017-06-30 — Account Classified as…**: The account of Sysco Industries Ltd. was…
- **2018-03-22 — Revival Proposal…**: Sysco Industries Ltd. submitted a revival…

## 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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