# In the matter of SND Limited CP (IB) No.544-MB-IV-2021

> NCLT judgment dated 2022-09-29. Citation: TCN-2022-NCLT-00893. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 29 Sept 2022
- **Citation:** TCN-2022-NCLT-00893
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/snd-limited-cp-ib-no544-mb-iv-2021-af11fbe2

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against SND Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The application was filed due to a default of Rs. 177,37,02,868.74 as of January 31, 2021, which included principal and interest. The Corporate Debtor contested the application, raising issues of limitation, insufficient stamping of documents, and the applicability of Section 10A of the IBC. The Financial Creditor claimed the date of default as September 5, 2019, while the Corporate Debtor argued it should be October 8, 2020, potentially falling within the period barred by Section 10A.

## Facts

State Bank of India (SBI), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against SND Limited, the Corporate Debtor, to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a total default of Rs. 177,37,02,868.74 as of January 31, 2021, comprising principal (Rs. 1,46,55,22,442.73) and interest (Rs. 31,16,52,618.05). The date of default was stated as September 5, 2019, based on a NeSL report dated September 28, 2021. The account was declared a Non-Performing Asset (NPA) on December 5, 2019. SBI had sanctioned a term loan of Rs. 178,00,00,000 to SND Limited, later revised to Rs. 75,00,00,000 under a First Supplemental Term Loan Consortium Agreement dated July 10, 2013. A working

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## Issues and analysis

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

**Ratio:** The principle is that a petition under Section 7 of the IBC must be filed within the

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**Reasoning:** The NCLT observed that the Financial Creditor presented a NeSL report indicating the date

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**Interpretation:** The interpretation of limitation involves determining the date of default and

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**Application:** In this case, the NCLT relied on the NeSL report and the Corporate Debtor's

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## Parties

- **Judges:** Manoj Kumar…; KISHORE VEMULAPALL…
- **Appellants:** State Bank of…
- **Respondents:** Snd Lim…

## Timeline

- **2013-02-25 — Term Loan Ag…**: Term Loan Agreement…
- **2013-03-01 — Working Capital…**: Working Capital…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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