# In the matter of Shree Mahalaxmi Corporation Pvt. Ltd.

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02440. The State Bank of India (SBI), as the Financial Creditor/Applicant, filed an application under…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02440
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-mahalaxmi-corporation-pvt-ltd-e5a8c191

## Summary

### Background

The State Bank of India (SBI), as the Financial Creditor/Applicant, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shree Mahalaxmi Corporation Private Limited, the Corporate Debtor/Respondent. SBI sought the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, claiming a default of Rs. 92,99,50,260.19 as of 29.12.2012, which increased to Rs. 563,44,58,294.26 as of 31.03.2022, including uncharged and accrued interest. The loan account was classified as Non-Performing Assets (NPA) on 30.06.2013.

## Facts

1. State Bank of India (SBI) extended credit facilities to Shree Mahalaxmi Corporation Pvt. Ltd. with an aggregate limit of Rs. 103.9 Crore, which was later enhanced to Rs. 142.89 Crore.
2. The account was classified as Non-Performing Asset (NPA) on 30.06.2013.
3. The date of default is 29.12.2012.
4. SBI initiated action under the SARFAESI Act on 02.12.2013, which was later withdrawn, and a fresh notice was issued on 20.11.2016.
5. The Corporate Debtor offered a full and final settlement to the bank on 19.06.2018.
6. The Corporate Debtor acknowledged the dues in a letter dated 12.10.2020.
7. The total amount claimed to be in default is Rs. 92,99,50,260.19 as on 29.12.2012 and Rs. 563,44,58,294.26 as on 31.03.2022.
8. The Corporate Debtor argued that letters exchanged were

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** The Adjudicating Authority need not get into the aspect of “pre-existing disputes”

…

**Reasoning:** The NCLT found that the debt was disbursed by the Financial Creditor, default was made by

…

**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

…

**Application:** The NCLT determined that the debt and default were established, the amount

…

## Parties

- **Judges:** BIDISHA BA…; SHRI. D.…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** Shree Mahalaxmi…

## Timeline

- **2009-12-16 — Sanction…**: Credit facilities were made based on…
- **2010-11-29 — Enhancement of Credit…**: Credit facilities were enhanced to Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 23 — Resolution professional to conduct corporate…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-23)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-mahalaxmi-corporation-pvt-ltd-e5a8c191