# In the matter of Mukesh Udyog Limited

> NCLT judgment dated 2024-06-03. Citation: TCN-2024-NCLT-01257. The State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 3 Jun 2024
- **Citation:** TCN-2024-NCLT-01257
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mukesh-udyog-limited-6834e06c

## Summary

### Background

The State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Mukesh Udyog Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was based on the corporate debtor's default in repaying its financial debt. The Financial Creditor claimed that the Corporate Debtor defaulted on a sum aggregating to Rs. 60.01 Crore as on 31.12.2021, including interest. The Corporate Debtor opposed the application, primarily arguing that the petition was barred by limitation and that there was no actual default in payment of financial debt.

## Facts

Mukesh Udyog Limited (Corporate Debtor) was incorporated on 24.08.1994. State Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP against the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted on a sum of Rs. 60.01 Crore as on 31.12.2021, including interest. The initial financial facilities of Rs. 9.50 Crore were sanctioned and released to the Corporate Debtor on 04.11.2003. Separate loan agreements were executed between the Corporate Debtor and Financial Creditors, and the financial facilities were renewed/enhanced/reduced on various dates, with the last renewal on 28.04.2014. The Financial Creditor sent a notice to the Corporate Debtor on

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## Issues and analysis

### Issue 1: Whether the present application …

**Ratio:** The issuance of a certificate of recovery in favor of the Financial Creditor gives rise

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**Reasoning:** The Adjudicating Authority relied on various judgments of the Apex Court, including Dena

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**Interpretation:** The interpretation of the law is that the limitation period for filing an

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**Application:** In this case, the Debt Recovery Tribunal, Chandigarh, issued a Recovery

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## Parties

- **Judges:** P.S.N. P…; Satya Ranjan…
- **Appellants:** State Bank of…
- **Respondents:** Mukesh Udyog…
- **Advocates:** Mr Harsh…; Ms Ramneek Kaur…; +3 more

## Timeline

- **1994-08-24 — Incorporation of…**: Mukesh Udyog Limited…
- **2003-11-04 — Initial Financial…**: Rs. 9.50 Crore sanctioned and…

## 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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