# In the matter of Sadashiv Capital Services Private Limited

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02404. Religare Finvest Limited, the Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02404
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sadashiv-capital-services-private-limited-05374edf

## Summary

### Background

Religare Finvest Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sadashiv Capital Services Private Limited, the Corporate Debtor/Guarantor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor sought to recover a default amount of Rs. 6,15,62,413.85. The Corporate Debtor argued that the petition was time-barred and that the agreements were executed under duress. The Financial Creditor contended that the Corporate Guarantee Agreement was executed on 11.03.2010, the first default occurred on 01.05.2019, and the petition was filed within the limitation period, considering the exclusion period granted by the Supreme Court due to the COVID-19 pandemic.

## Facts

Religare Finvest Limited (Financial Creditor) filed a petition against Sadashiv Capital Services Private Limited (Corporate Debtor/Guarantor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor acted as a guarantor for a loan availed by borrowers, including M/s Sadashiv Casting Private Limited. A loan of Rs. 8,80,00,000/- was sanctioned on 11.03.2010, but the disbursement was reduced to Rs. 6,52,00,000. The Corporate Debtor executed a deed of guarantee on 29.03.2010. The last part payment was made on 30.04.2019. The Financial Creditor issued a recall notice and invoked arbitration on 28.12.2019. The total amount in default was Rs. 6,15,62,413.85 as of 01.05.2019. The Corporate Debtor contended the petition was time-barred and the

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## Issues and analysis

### Issue 1: Whether the present application is …

**Ratio:** The Supreme Court in Suo-Moto Writ Petition (C) No. 3/2020 extended the period of

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**Reasoning:** The Adjudicating Authority considered the Supreme Court's orders extending the limitation

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**Interpretation:** The Supreme Court's orders regarding the extension of limitation during the

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**Application:** The court applied the Supreme Court's orders to exclude the period from

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## Parties

- **Judges:** Harnam Singh…; L. N. G…
- **Appellants:** Religare Finvest…
- **Respondents:** Sadashiv Capital…
- **Advocates:** Sanjeev…

## Timeline

- **2010-03-11 — Loan San…**: Loan of Rs. 8,80,00,000/-…
- **2010-03-29 — Guarantee…**: Corporate Debtor…

## 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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