# In the matter of Shrinathji Spintex Private Limited

> NCLT judgment dated 2025-05-08. Citation: TCN-2025-NCLT-00102. The case pertains to an application filed by Rajradhe Finance Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 8 May 2025
- **Citation:** TCN-2025-NCLT-00102
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shrinathji-spintex-private-limited-2d7abdc3

## Summary

### Background

The case pertains to an application filed by Rajradhe Finance Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Shrinathji Spintex Private Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on 16.11.2010. The Financial Creditor claimed a default amount of Rs. 11,71,43,960.20 as of 29.05.2015. The petition was initially dismissed for want of prosecution but was later restored by NCLAT. The Corporate Debtor had availed cash credit facilities from Dena Bank, which later merged with Bank of Baroda, and had executed various agreements and instruments in favor of the bank. Raj Radhe Finance substituted the original financial creditor due

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## Facts

Raj Radhe Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Shrinathji Spintex Private Limited. The Corporate Debtor was incorporated on 16.11.2010 with an authorized share capital of Rs. 2,00,00,000/-. The Financial Creditor claimed a default amount of Rs. 11,71,43,960.20 as of 29.05.2015. The petition was initially dismissed for want of prosecution but was later restored by NCLAT. The Corporate Debtor had availed cash credit facilities from Dena Bank, which later merged with Bank of Baroda, and had executed various agreements and instruments in favor of the bank, including a hypothecation agreement dated 03.06.2011. Dena Bank had also filed Original

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## Issues and analysis

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

**Ratio:** The limitation period for initiating proceedings under Section 7 of the IBC is governed

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**Reasoning:** The court considered the letter dated 24.12.2015, in which the Corporate Debtor

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**Interpretation:** The acknowledgment of debt by the Corporate Debtor within the limitation period

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**Application:** In this case, the Corporate Debtor acknowledged the debt in a letter dated

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Raj Radhe Finance…
- **Respondents:** Shrinathji…; Shrinathji…

## Timeline

- **2010-11-16 — Incorporation of…**: Shrinathji Spintex Private…
- **2011-06-03 — Hypothecation…**: Corporate Debtor executed an Agreement of Hypothecation with Dena Bank for…

## 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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