# In the matter of Richi Richi Agro Foods Pvt. Ltd.

> NCLT judgment dated 2023-08-01. Citation: TCN-2023-NCLT-02249. The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Aug 2023
- **Citation:** TCN-2023-NCLT-02249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/richi-richi-agro-foods-pvt-ltd-d952208a

## Summary

### Background

The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Richi Richi Agro Foods Pvt. Ltd. The corporate debtor had availed financial facilities from the petitioner starting in 2009, with the last facility availed on April 28, 2016. The credit facilities included cash credit, export packing credit, and credit exposure limits, totaling Rs. 47.50 crores. The corporate debtor defaulted on payments, leading to its account being classified as NPA on June 30, 2016. Despite measures taken by the financial creditor, the corporate debtor failed to repay the outstanding amounts.

## Facts

State Bank of India (SBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Richi Richi Agro Foods Pvt. Ltd. SBI, the financial creditor, had extended various credit facilities to the corporate debtor, including cash credit, export packing credit, and credit exposure limits, totaling Rs. 47.50 crores. The corporate debtor defaulted on its payment obligations, leading to its account being classified as a Non-Performing Asset (NPA) on June 30, 2016. The total amount claimed to be in default was Rs. 74,77,71,662 as of November 30, 2019, with the initial date of default being December 28, 2015. The corporate debtor acknowledged its debt through a balance security

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## Issues and analysis

### Issue 1: Whether the present application …

**Ratio:** Section 19 of the Limitation Act, 1963, states that where payment on account of a debt or

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**Reasoning:** The court observed that the corporate debtor acknowledged its debt towards the

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**Interpretation:** Section 19 of the Limitation Act provides a fresh period of limitation from the

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**Application:** The corporate debtor made a payment of Rs. 7,84,027.00 on 31.07.2018. The

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** State Bank of…
- **Respondents:** M/s Richi Richi…
- **Advocates:** Pulkit…

## Timeline

- **2009-01-01 — Financial Facilities…**: Corporate debtor started availing financial facilities from the petitioner financial…
- **2016-04-28 — Last Financial Facility…**: Corporate debtor availed the last financial facility from the petitioner financial…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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