# In the matter of S K S Textiles Limited CP (IB) No.799-MB-IV-2021

> NCLT judgment dated 2022-09-28. Citation: TCN-2022-NCLT-00908. The case pertains to an application filed by DBS Bank India Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 28 Sept 2022
- **Citation:** TCN-2022-NCLT-00908
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/s-k-s-textiles-limited-cp-ib-no799-mb-iv-2021-84a00461

## Summary

### Background

The case pertains to an application filed by DBS Bank India Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s S.K.S Textiles Limited, the Corporate Debtor. The application, CP (IB) No.799/MB-IV/2021, was filed due to a default of Rs. 27,26,78,417.26/-. The Financial Creditor had sanctioned various credit facilities to the Corporate Debtor over time, and the Corporate Debtor had allegedly defaulted on repayments.

## Facts

DBS Bank India Limited, the Financial Creditor, filed an application CP (IB) No.799/MB-IV/2021 under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s S.K.S Textiles Limited, the Corporate Debtor. The application was based on a claimed default of Rs. 27,26,78,417.26/-, with the date of default mentioned as 01.05.2021. The petition was filed on 06.04.2021. The Financial Creditor had sanctioned various credit facilities to the Corporate Debtor under multiple facility letters issued between 2015 and 2020. These facilities included Multiline facilities, Trade Financing Facilities, Working Capital Facilities, and Letter of Credit facilities. The Corporate Debtor deposited three cheques on

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## Issues and analysis

### Issue 1: Whether the petition made by the Financial Creditor …

**Ratio:** A petition is considered complete if it contains all the necessary information and

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**Reasoning:** The NCLT observed that the petition made by the Financial Creditor was complete in all

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**Interpretation:** This means that the Financial Creditor had provided all the necessary

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**Application:** The application was found to be in the proper form, and the debt amount was

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## Parties

- **Judges:** Manoj Kumar…; KISHORE VEMULAPALL…
- **Appellants:** DBS Bank India…
- **Respondents:** M/s S.K.S…
- **Advocates:** Nikhil R…; Gaurav A…

## Timeline

- **2021-04-06 — Petition…**: The petition CP (IB) No.799/MB-IV/2021…
- **2021-05-01 — Date of D…**: The Date of Default as mentioned…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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