# In the matter of Sai Industries Limited

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03176. Shubhlaxmi Investment Advisory Private Limited filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03176
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sai-industries-limited-9a6ab91e

## Summary

### Background

Shubhlaxmi Investment Advisory Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against Sai Industries Limited. The applicant claimed that Sai Industries Limited approached them for business assistance of Rs. 1,04,00,000/- at a 10% interest rate. The applicant transferred Rs. 20,00,000/- on 20.12.2022, Rs. 30,00,000/- on 21.12.2022, and purchased securities worth Rs. 29,00,000/- on 31.12.2022, and Rs. 25,00,000/- on 03.01.2023. A mutual loan agreement was entered, and a legal notice was sent when the respondent failed to repay the loan.

## Facts

Shubhlaxmi Investment Advisory Private Limited (the applicant) claimed that Sai Industries Limited (the respondent) sought financial assistance of Rs. 1,04,00,000/- at 10% interest. The applicant transferred Rs. 20,00,000/- on 20.12.2022, Rs. 30,00,000/- on 21.12.2022, purchased securities worth Rs. 29,00,000/- on 31.12.2022, and transferred Rs. 25,00,000/- on 03.01.2023. A legal notice was issued on 29.04.2023 for non-payment. The respondent admitted the debt. The applicant relied on a board resolution, balance/amount confirmation statement, legal notice, letter dated 30.09.2022, and a statement of amounts. The applicant claimed a total outstanding of Rs. 1,06,34,000/- as of 31.03.2023. The court noted that the applicant's RBI registration was cancelled in 2018. The

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## Issues and analysis

### Issue 1: Whether there is an unpaid Financial debt subsisting over the threshold limit for which the CIRP …

**Ratio:** The existence of a financial debt exceeding the threshold limit is a prerequisite for

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**Reasoning:** The court examined the evidence presented by the applicant, including bank statements and

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**Interpretation:** The court interpreted the requirements of Section 7 of the IBC, emphasizing the

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**Application:** The court applied the principle that the applicant must provide sufficient

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Shubhlaxmi…
- **Respondents:** Sai Industries…

## Timeline

- **2022-12-20 — Transfer of…**: Applicant transferred Rs.…
- **2022-12-21 — Transfer of…**: Applicant transferred 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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