# In the matter of Sawant Logistics Services Private Limited

> NCLT judgment dated 2025-04-28. Citation: TCN-2025-NCLT-00162. This case involves an application filed by Bank of Maharashtra under Section 7 of the…

- **Court:** NCLT
- **Order date:** 28 Apr 2025
- **Citation:** TCN-2025-NCLT-00162
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sawant-logistics-services-private-limited-859eff66

## Summary

### Background

This case involves an application filed by Bank of Maharashtra under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sawant Logistic Services Private Limited, the Corporate Debtor. The application was filed due to the Corporate Debtor's failure to repay outstanding dues. The applicant had granted a cash credit facility to the corporate debtor, which later defaulted, leading to the account being classified as NPA. The bank then filed the application to initiate CIRP.

## Facts

Bank of Maharashtra granted a cash credit facility of Rs. 2.00 Crore to Sawant Logistic Services Private Limited on 28.12.2012. The Corporate Debtor acknowledged this facility through a request letter dated 03.01.2013. The Corporate Debtor defaulted on 08.02.2018, leading to the account being classified as NPA on 09.05.2018. A demand notice was issued on 07.06.2018 under Section 13(2) of the SARFAESI Act, 2002, for an amount of Rs. 1,84,66,579/-, but the Corporate Debtor did not respond. The Applicant filed OA/528/2020 on 19.08.2020 under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993. The Corporate Debtor acknowledged the debt in its financial statements for FY 2018-19, 2020-21, 2021-22, and 2022-23. The latest balance sheet for FY 2022-23 showed an

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## Issues and analysis

### Issue 1: Whether the application filed by Bank of Maharashtra under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The Tribunal found that the Applicant, Bank of Maharashtra, is a financial creditor and

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The Tribunal applied Section 7 to the facts of the case, noting that the Bank

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** Sawant Logistic…

## Timeline

- **2012-12-28 — Sanction…**: Applicant granted Cash Credit limit of…
- **2013-01-03 — Request L…**: Corporate Debtor acknowledged…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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