# In the matter of S. R. Worth Limited

> NCLT judgment dated 2024-08-30. Citation: TCN-2024-NCLT-00728. The case involves an application filed by State Bank of India (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 30 Aug 2024
- **Citation:** TCN-2024-NCLT-00728
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/s-r-worth-limited-d7c01ad8

## Summary

### Background

The case involves an application filed by State Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S. S.R. Worth Limited (Corporate Debtor). The Corporate Debtor had availed credit facilities from the Financial Creditor since 2008, with the last sanction on March 28, 2014. The Corporate Debtor defaulted on repayments from March 31, 2014, leading to the loan accounts becoming irregular. A demand notice was issued on February 9, 2015. The Debts Recovery Tribunal-1, Kolkata, passed a money decree in favor of the Financial Creditor on June 24, 2022.

## Facts

The State Bank of India, 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 M/S. S.R. Worth Limited, the Corporate Debtor. The Corporate Debtor availed credit facilities from the Financial Creditor since 2008. The last sanction was made on March 28, 2014, with an aggregate limit of Rs. 5720 Lacs. The Corporate Debtor defaulted in repayment of interests or installments in its loan account from March 31, 2014, and subsequently, the loan accounts became irregular. A Demand Notice was issued on February 9, 2015, for a sum of Rs. 56,52,54,407.45 inclusive of interest calculated up to December 31, 2014. The Corporate Debtor admitted the default in

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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:** The Supreme Court in Dena Bank (now Bank of Baroda) v C. Shivakumar Reddy and Anr held

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**Reasoning:** The NCLT relied on the Supreme Court's judgment in Dena Bank v. C. Shivakumar Reddy,

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**Interpretation:** Section 7 of the IBC comes into play when the corporate debtor commits a

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**Application:** In this case, the Debts Recovery Tribunal-1, Kolkata, passed a money decree in

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## Parties

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

## Timeline

- **2008-01-01 — Credit Facilities…**: The Corporate Debtor started availing credit…
- **2014-03-28 — Last San…**: The last sanction of credit facilities was made…

## 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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