# In the matter of Shree Sainath Land & Development (India) Private Limited

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01062. LIC Housing Finance Ltd. filed a Company Petition under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 20 Oct 2023
- **Citation:** TCN-2023-NCLT-01062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-sainath-land-development-india-private-limited-03a4f31a

## Summary

### Background

LIC Housing Finance Ltd. filed a Company Petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Shree Sainath Land & Development (India) Private Limited, the Corporate Debtor, due to default in repayment of a loan facility. The financial creditor had sanctioned a loan facility to the corporate debtor, and the corporate debtor defaulted on the repayment.

## Facts

LIC Housing Finance Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) against Shree Sainath Land & Development (India) Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The petition was filed on 2023-01-12, claiming a total outstanding amount of Rs. 111,68,55,172.35, including principal and interest. The date of default was specified as 2021-08-01, and the Corporate Debtor's loan account was declared as NPA on 2021-11-03. The Financial Creditor had sanctioned a loan facility of Rs. 150,00,00,000 to the Corporate Debtor in 2018. The Corporate Debtor had also executed an Indenture of Mortgage in favor of the Financial Creditor. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial …

**Ratio:** The limitation period for filing a petition under Section 7 of the IBC is three years

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**Reasoning:** The Tribunal observed that the date of default specified in the application was

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**Interpretation:** The Tribunal interpreted the limitation period under the IBC and determined

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**Application:** The Tribunal applied the limitation period rule to the facts of the case and

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** LIC Housing…
- **Respondents:** SHREE SAINATH…
- **Advocates:** Akhil Sa…; Raghawan S…; +9 more

## Timeline

- **2018-06-20 — Sanction…**: Financial Creditor sanctioned a Loan Facility up to Rs.150,00,00,000/- to the Corporate…
- **2018-07-27 — Loan Agre…**: Loan availed by the Corporate Debtor subject to the terms and conditions contained in the…

## 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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