# In the matter of S S Collection LLP C.P. 1256-IB-MB-2022

> NCLT judgment dated 2023-05-12. Citation: TCN-2023-NCLT-03401. The case involves a petition filed by Creative Industries Unit II (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 12 May 2023
- **Citation:** TCN-2023-NCLT-03401
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/s-s-collection-llp-cp-1256-ib-mb-2022-10e016bf

## Summary

### Background

The case involves a petition filed by Creative Industries Unit II (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against S S Collection LLP (Corporate Debtor). The Financial Creditor claimed a default on a financial debt of Rs. 1,32,80,357/- including interest. The Corporate Debtor argued that the default date fell within the period covered by Section 10A of the Code, which bars applications for defaults arising during a specific period related to the COVID-19 pandemic.

## Facts

Creative Industries Unit II (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against S S Collection LLP (Corporate Debtor). The Financial Creditor had advanced a loan of Rs. 2,00,00,000 to the Corporate Debtor on 2018-08-28 at an interest rate of 12% per annum, repayable quarterly within one year. The Corporate Debtor repaid Rs. 1,00,00,000 on 2018-12-24. The Corporate Debtor continued to service the loan, with the last interest payment of Rs. 2,72,219 made on 2020-01-10 for the quarter ending 2019-12-31. The Financial Creditor claimed the date of default as 2020-03-31. The Corporate Debtor admitted to receiving the loan and owing a sum of Rs. 1,02,69,260 but

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor is barred under Section 10A of the Insolvency …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code, 2016, prohibits the initiation of

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**Reasoning:** The NCLT observed that the Financial Creditor claimed the date of default as March 31,

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**Interpretation:** Section 10A was introduced to provide relief to companies affected by the

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**Application:** Since the Financial Creditor's claimed date of default (March 31, 2020) fell

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## Parties

- **Judges:** Kuldip Kumar…; Madhu S…
- **Appellants:** Creative Industrie…
- **Respondents:** S S Collect…
- **Advocates:** Gyanika K…; Auroma…

## Timeline

- **2018-08-28 — Loan Adv…**: Financial Creditor advanced a loan of Rs.…
- **2018-12-24 — Partial Rep…**: Corporate Debtor repaid Rs.…

## 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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