# In the matter of SRC Metalicks Private Limited C.P (IB) No. 95-KB-2022

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02354. The case involves a petition filed by State Bank of India (Financial Creditor) under Section 7…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02354
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/src-metalicks-private-limited-cp-ib-no-95-kb-2022-6ce252c5

## Summary

### Background

The case involves a petition filed by State Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against SRC Metalicks Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor had sanctioned credit facilities to the Corporate Debtor, who defaulted in repayment. The petition was filed on 02 March, 2022.

## Facts

State Bank of India (Financial Creditor) filed a petition against SRC Metalicks Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor was incorporated on 20 July, 2004, and later changed its name to SRC Metalicks Private Limited. The Financial Creditor had sanctioned credit facilities of Rs. 16,00,00,000/- to the Corporate Debtor, secured by hypothecation of movables, personal and corporate guarantees, and mortgage of immovable properties. The Corporate Debtor defaulted in repayment, leading to its account being classified as a Non-Performing Asset on 11 September, 2013. The outstanding dues, including interest, amounted to Rs. 86,34,80,232.40 as of 31 August, 2021. The Financial Creditor issued a demand

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## Issues and analysis

### Issue 1: Whether prior proceedings under the SARFAESI Act will qualify for the exclusion of time under …

**Ratio:** The exclusion under section 14 (2) of the Limitation Act applies to a proceeding where

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**Reasoning:** The court considered the Supreme Court's judgment in Sesh Nath Singh & Anr. v.

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**Interpretation:** Section 14 of the Limitation Act allows for the exclusion of time spent in

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**Application:** The court found that the prior proceedings under the SARFAESI Act did not

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** State Bank of…
- **Respondents:** SRC Metalicks…

## Timeline

- **2004-07-20 — Incorporation of…**: SRC Metalicks Private Limited was…
- **2009-06-26 — Name Cha…**: The Corporate Debtor changed its name…

## 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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