# In the matter of Anupriya Management Private Limited

> NCLT judgment dated 2024-01-01. Citation: TCN-2024-NCLT-03380. The State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Jan 2024
- **Citation:** TCN-2024-NCLT-03380
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/anupriya-management-private-limited-4195ebcb

## Summary

### Background

The State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Anupriya Management Private Limited, the Corporate Guarantor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The application arises from the Corporate Debtor, Avani Projects Infrastructure Ltd, defaulting on loan payments, leading to its classification as a Non-Performing Asset (NPA) on October 28, 2015. The Corporate Debtor is already undergoing CIRP initiated by another financial creditor, Devi Trading & Holding Ltd., via an order dated March 13, 2019. The Financial Creditor has provided cash credit facilities to the Corporate Debtor to the tune of Rs. 67 Crore since 2013.

## Facts

The State Bank of India (SBI) provided cash credit facilities to Avani Projects Infrastructure Ltd (Corporate Debtor) amounting to Rs. 67 Crore. The Corporate Debtor defaulted on payments, leading to its account being classified as a Non-Performing Asset (NPA) on October 28, 2015. The Corporate Debtor is already undergoing Corporate Insolvency Resolution Process (CIRP) initiated by Devi Trading & Holding Ltd. Anupriya Management Private Limited (Corporate Guarantor) provided a corporate guarantee for the loans availed by the Corporate Debtor. The total amount of debt default and due is Rs. 40,90,77,041.00 as on November 30, 2022, with the date of default claimed as November 30, 2022. SBI sent a demand notice to the Corporate Guarantor on May 25, 2016, for Rs.

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## Issues and analysis

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

**Ratio:** The liability of the surety is co-extensive with that of the principal debtor, as per

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**Reasoning:** The court relied on precedents set by the Hon'ble Apex Court and the Hon'ble NCLAT,

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**Interpretation:** Section 7 of the I&B Code allows for the initiation of CIRP against a

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**Application:** In this case, the Corporate Debtor, Avani Projects Infrastructure Ltd,

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## Parties

- **Judges:** BIDISHA BA…; SHRI. D.…; +1 more
- **Respondents:** Avani Projects…; Anupriya Managemen…

## Timeline

- **2015-10-28 — Account Classified as…**: The Corporate Debtor's account was…
- **2019-03-13 — CIRP Initiated Against…**: Devi Trading & Holding Ltd. initiated CIRP against the Corporate Debtor via an order from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(2) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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