# In the matter of Shree Basaveshwara Sugars Limited

> NCLT judgment dated 2024-11-14. Citation: TCN-2024-NCLT-00222. The Indian Renewable Energy Development Agency Limited (IREDA) filed a Company Petition (CP(IB)…

- **Court:** NCLT
- **Order date:** 14 Nov 2024
- **Citation:** TCN-2024-NCLT-00222
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-basaveshwara-sugars-limited-cfffa79a

## Summary

### Background

The Indian Renewable Energy Development Agency Limited (IREDA) filed a Company Petition (CP(IB) 37/2022) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 against Shree Basaveshwara Sugars Limited, seeking initiation of the corporate insolvency resolution process (CIRP) due to default in repayment of financial assistance. The Respondent had approached the Applicant in 2010 for financial assistance of Rs 89,95,00,000 for an integrated sugar complex, and a loan agreement was executed on 10/11/2010. The Respondent failed to service the loan, leading to a recall notice. The petition was initially adjourned due to settlement talks, but the Respondent's right to file a reply was forfeited. The Respondent proposed a One-Time Settlement (OTS) which was approved

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## Facts

In 2010, Shree Basaveshwara Sugars Limited (the Respondent) sought financial assistance of Rs 89,95,00,000 from Indian Renewable Energy Development Agency Limited (IREDA, the Applicant) for an integrated sugar complex. A loan agreement was executed on 10/11/2010. The Respondent defaulted on repayments, leading IREDA to issue a recall notice. IREDA then filed a Section 7 petition (CP(IB) 37/2022) under the IBC. The petition was adjourned multiple times for settlement talks. The Respondent proposed an OTS, which IREDA approved on 17/11/2023, but the Respondent failed to comply with the terms. On 11/01/2024, the Tribunal disposed of IREDA's petition because Canara Bank's Section 7 petition (CP(IB) 117/2023) against the same Corporate Debtor had been admitted on

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## Issues and analysis

### Issue 1: Whether the Tribunal has the jurisdiction to recall its order disposing of the petition filed by …

**Ratio:** The Tribunal has the inherent jurisdiction to recall its order on sufficient grounds,

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**Reasoning:** The Tribunal relied on the judgment of the Hon'ble NCLAT in Union Bank of India v. Dinkar

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**Interpretation:** The inherent jurisdiction of the Tribunal allows it to correct errors or

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**Application:** The Tribunal applied this principle by noting that the disposal of IREDA's

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## Parties

- **Judges:** K. Bi…; Manoj Kumar…
- **Appellants:** Indian Renewable…
- **Respondents:** Shree Basaveshwara…; M/s Shree…

## Timeline

- **2010-01-01 — Respondent Approached…**: The Respondent approached the Applicant for…
- **2010-11-10 — Loan Agreement…**: The Applicant and Respondent…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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