# In the matter of Shri Tradco Deesan Private Limited C.P. 1135-IB-MB-2021

> NCLT judgment dated 2023-02-15. Citation: TCN-2023-NCLT-04587. State Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 15 Feb 2023
- **Citation:** TCN-2023-NCLT-04587
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shri-tradco-deesan-private-limited-cp-1135-ib-mb-2021-8a5ac7c2

## Summary

### Background

State Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Shri Tradco Deesan Private Limited, the Corporate Debtor, due to a financial debt of Rs. 147,86,14,870. The Corporate Debtor is a wholly-owned subsidiary of Shri Tradco Deesan Private Limited and is engaged in the manufacturing of Maize Based Food, Feed, and Industrial Derivatives Products. The Corporate Debtor availed various credit facilities from the Financial Creditor, which were subsequently renewed and enhanced. The Corporate Debtor faced financial difficulties from 2019 onwards, leading to its account being classified as NPA on 26.08.2019. The Financial Creditor issued notices under

…

## Facts

State Bank of India (SBI), the Financial Creditor, filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Shri Tradco Deesan Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor is engaged in manufacturing Maize Based Food, Feed, and Industrial Derivatives Products. SBI had granted loan facilities to the Corporate Debtor amounting to Rs. 105.62 Crores, which were later enhanced. The Corporate Debtor's account was classified as Non-Performing Asset (NPA) on 26.08.2019 due to financial irregularities and failure to regularize the account. As of 31.08.2021, the total outstanding amount was Rs. 147,86,14,870. The Corporate Debtor opposed the CIRP, claiming that no amount was

…

## Issues and analysis

### Issue 1: Whether the Petitioner has established the existence of a debt and default as required under …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, requires the Financial Creditor to

…

**Reasoning:** The NCLT found that the Petitioner had provided sufficient evidence to establish the

…

**Interpretation:** The term 'default' as defined in Section 3(12) of the IBC means non-payment of

…

**Application:** The NCLT applied the ratio to the facts of the case and concluded that the

…

## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Respondents:** Tradco Deesan…
- **Advocates:** Sagar P…; U.C. N…; +5 more

## Timeline

- **2012-10-25 — Sanction…**: Corporate Debtor was sanctioned credit facilities aggregating to Rs. 56.50 Crores vide…
- **2013-11-13 — Date of Sa…**: Credit limits were renewed and reviewed from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

---

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/shri-tradco-deesan-private-limited-cp-1135-ib-mb-2021-8a5ac7c2