# In the matter of Hi Tech Ferrous & Non Ferrous India Private Limited

> NCLT judgment dated 2024-10-10. Citation: TCN-2024-NCLT-00451. The case involves an application filed by Small Industries Development Bank of India (SIDBI)…

- **Court:** NCLT
- **Order date:** 10 Oct 2024
- **Citation:** TCN-2024-NCLT-00451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hi-tech-ferrous-non-ferrous-india-private-limited-96d7ab95

## Summary

### Background

The case involves an application filed by Small Industries Development Bank of India (SIDBI) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Hi Tech Ferrous & Non-Ferrous India Pvt. Ltd. The application was filed due to the Corporate Debtor's failure to maintain financial discipline, leading to the classification of loan accounts as Non-Performing Assets (NPA). The Financial Creditor recalled loan facilities and issued notices under the SARFAESI Act. The Corporate Debtor's proposal for rescheduling financial facilities was rejected. The Financial Creditor sought an upfront payment of Rs. 1.27 crores for considering the rescheduling request.

## Facts

Small Industries Development Bank of India (SIDBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Hi Tech Ferrous & Non-Ferrous India Pvt. Ltd. The application was filed on 05.04.2024. The Corporate Debtor availed various financial facilities from the Financial Creditor, including term loans and working capital. The total financial debt was Rs. 23,07,21,576.62 as on 22.03.2024, with the date of default being 26.01.2023. The Corporate Debtor failed to maintain financial discipline, leading to the classification of loan accounts as Non-Performing Assets (NPA) on 26.01.2023. The Financial Creditor recalled loan facilities and issued notices under the SARFAESI Act. The

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## Issues and analysis

### Issue 1: Whether the application is filed …

**Ratio:** The application must be filed within the

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**Reasoning:** The Tribunal stated that the application was filed on 05.04.2024, while the date of

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**Interpretation:** The limitation period for filing an application under Section 7 of the IBC is

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**Application:** In this case, the application was filed within the prescribed limitation

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Small Industries…
- **Respondents:** Hi Tech Ferrous &…
- **Advocates:** Sh. Sushant…; Sh. Sanjeev…

## Timeline

- **2023-01-26 — Date of D…**: The date of default mentioned in Record of…
- **2023-02-13 — Loan Recall…**: The Financial Creditor had recalled all the…

## 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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