# In the matter of S. R. Worth Limited

> NCLT judgment dated 2024-08-30. Citation: TCN-2024-NCLT-00722. The case involves a petition filed by State Bank of India (Financial Creditor) under Section 7…

- **Court:** NCLT
- **Order date:** 30 Aug 2024
- **Citation:** TCN-2024-NCLT-00722
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/s-r-worth-limited-1fde1b6d

## Summary

### Background

The case involves a petition filed by State Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/S. S.R. Worth Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed credit facilities from the Financial Creditor since 2008, with the last sanction on March 28, 2014, for Rs. 5720 Lacs. The Corporate Debtor defaulted on repayments from March 31, 2014, leading to irregular loan accounts. A demand notice was issued on February 9, 2015, for Rs. 56,52,54,407.45. The Corporate Debtor acknowledged the default in its balance sheets for the years ending March 31, 2016, 2018, 2020, and 2021. The Debts Recovery Tribunal-1, Kolkata, passed a money decree in favor

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## Facts

State Bank of India (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/S. S.R. Worth Limited (Corporate Debtor). The Corporate Debtor availed credit facilities from the Financial Creditor since 2008, with the last sanction being on 28.03.2014 for Rs. 5720 Lacs. The Corporate Debtor defaulted on repayments from 31.03.2014, leading to irregular loan accounts. A demand notice was issued on 09.02.2015 for Rs. 56,52,54,407.45. The Corporate Debtor admitted the default in its balance sheets for the years ending 31st March 2016, 31st March 2018, 31st March 2020, and 31st March 2021. The Learned Debts Recovery Tribunal-1, Kolkata, passed a money decree in favor of the Financial Creditor on 24.06.2022 for Rs.

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## Issues and analysis

### Issue 1: Whether a final judgment and decree of the DRT in favour of the financial creditor, or issue of a …

**Ratio:** A Recovery Certificate in itself gives a fresh cause of action to the Bank to institute

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**Reasoning:** The court relied on the Supreme Court's judgment in Dena Bank (now Bank of Baroda) v C.

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**Interpretation:** The interpretation of Section 7 of the IBC, along with Section 18 of the

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**Application:** In this case, the money decree passed by the DRT on 24.06.2022 and the Recovery

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** State Bank of…
- **Respondents:** M/S. S.R. WORTH…

## Timeline

- **2008-01-01 — Credit Facilities…**: The Corporate Debtor has availed diverse credit facilities from the Financial Creditor…
- **2014-03-28 — Last San…**: The last sanction of credit facilities was made on 28.03.2014 with an aggregate limit of…

## 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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