# In the matter of R. Piyarelall Iron & Steel private Limited

> NCLT judgment dated 2024-01-19. Citation: TCN-2024-NCLT-02997. The State Bank of India (SBI), as the Financial Creditor, filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 19 Jan 2024
- **Citation:** TCN-2024-NCLT-02997
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/r-piyarelall-iron-steel-private-limited-a8df2339

## Summary

### Background

The State Bank of India (SBI), as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against R. Piyarelall Iron & Steel Private Limited, the Corporate Debtor. The application was filed due to the Corporate Debtor's default on loan repayments.

## Facts

The State Bank of India (SBI) extended various credit facilities to R. Piyarelall Iron & Steel Private Limited. The Corporate Debtor applied for EPC/PCFC and Bank Guarantee facilities in 2007. The total principal outstanding dues claimed by SBI amounted to Rs. 16,52,27,574/-, which, with accrued interest at 14.25% per annum, cumulated to Rs. 59,61,02,711/-. The date of default was claimed as June 30, 2012, when the Corporate Debtor's account was classified as NPA. The Corporate Debtor acknowledged the default in its balance sheets as of March 31, 2018. SBI issued a notice under Section 13(2) of the SARFAESI Act, 2002, on June 19, 2014, demanding payment of Rs. 19,63,05,874.43/-. The Corporate Debtor filed a suit in 2014 against SBI, seeking a decree for Rs.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 18 of the Limitation Act, 1963, provides that where, before the expiration of the

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**Reasoning:** The NCLT reasoned that the Corporate Debtor's balance sheets as of March 31, 2015, and

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**Interpretation:** The interpretation of Section 18 of the Limitation Act, 1963, and the Supreme

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**Application:** The Corporate Debtor's acknowledgments of debt in its balance sheets extended

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** State Bank of…
- **Respondents:** R. Piyarelall…

## Timeline

- **2007-08-14 — Application for…**: The Corporate Debtor applied to the Financial Creditor for EPC/PCFC of Rs. 15 Crore and…
- **2007-10-04 — Sanction…**: The Financial Creditor sanctioned a loan of…

## 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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