# In the matter of Silver Jublee Motors Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03127. Capri Global Capital Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03127
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/silver-jublee-motors-limited-8ff1ee14

## Summary

### Background

Capri Global Capital Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Silver Jubilee Motors Limited, alleging default on financial debt. The Financial Creditor and Corporate Debtor entered into a Facility Agreement on 31.08.2015, with further loan agreements executed subsequently. The Corporate Debtor's account was declared Non-Performing Asset (NPA) on 05.12.2020. A demand notice was issued on 24.05.2021, with the Financial Creditor claiming the date of default as 01.08.2021.

## Facts

Capri Global Capital Limited (Financial Creditor) extended financial assistance to Silver Jubilee Motors Limited (Corporate Debtor) through a Facility Agreement dated 31.08.2015 for Rs.3,50,00,000/-. Further, on 31.08.2016, another loan agreement was executed for Rs.82,25,000/- against property by deposit of title deeds. The Corporate Debtor defaulted in repayment, leading to the account being classified as NPA on 05.12.2020. The Financial Creditor issued a Demand Notice on 24.05.2021, requiring payment of Rs.3,33,86,733/- within 60 days. The Corporate Debtor failed to make the payment, and the Financial Creditor considered 01.08.2021 as the date of default. The Corporate Debtor argued that the default should be reckoned from the date of NPA declaration, which falls

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## Issues and analysis

### Issue 1: Whether the present Application filed by the Financial Creditor is hit by the provisions of Section …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code imposes a bar against filing

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**Reasoning:** The NCLT reasoned that the default in respect of payment of the entire outstanding amount

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**Interpretation:** Section 10A provides a moratorium on the initiation of CIRP for defaults

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**Application:** The NCLT applied the ratio to the facts by determining that the relevant

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## Parties

- **Judges:** SANJIV…; K. R. SAJI…
- **Appellants:** Capri Global…
- **Respondents:** Silver Jubilee…
- **Advocates:** Pranav Kh…; Rohan Ag…

## Timeline

- **2015-08-31 — Facility Ag…**: Financial Creditor and Corporate Debtor entered into a Facility Agreement for extending…
- **2016-08-31 — Loan Agre…**: Another loan agreement was executed between the Financial Creditor and the Corporate…

## 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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