# In the matter of KMP Spinners Private Limited

> NCLT judgment dated 2025-07-11. Citation: TCN-2025-NCLT-00802. Aditya Birla Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Jul 2025
- **Citation:** TCN-2025-NCLT-00802
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kmp-spinners-private-limited-7054ceb3

## Summary

### Background

Aditya Birla Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy Board of India (Petition to Adjudicating Authority), to initiate Corporate Insolvency Resolution Process (CIRP) against KMP Spinners Private Ltd.

## Facts

Aditya Birla Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against KMP Spinners Private Ltd.

The date of default was 29.08.2019, and the total amount of default was Rs. 11,43,92,972/-.

The Financial Creditor had granted Line of Credit and Term Loan facilities to the Corporate Debtor.

The Corporate Debtor committed continuous defaults on the due dates.

The Financial Creditor issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 16.09.2019.

The Corporate Debtor failed to file a reply/counter statement despite being given ample opportunity.

The Financial Creditor proposed the name of Mr. Ravindra Belayur as the Interim Resolution Professional (IRP).

## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** The limitation period is extended by Hon'ble Supreme Court in Suo Moto W.P. (Civil) No. 3

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**Reasoning:** The date of default is 29.08.2019, the limitation period expired on 29.08.2022. However,

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**Interpretation:** The period of limitation in the present case would expire on 13.03.2024. The

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**Application:** The petition is within

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** ADITYA BIRLA…
- **Respondents:** KMP Spinners…; KMP Spinners Pvt.…
- **Other parties:** A.S.Sathish…; Ravindra B…
- **Advocates:** Surayana, Shiksha…

## Timeline

- **2016-08-11 — Sanction…**: Sanction Letter dated…
- **2018-02-02 — Sanction…**: Sanction Letter dated…

## 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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