# In the matter of SRD Management Company Private Limited CP (IB) No.1058-PB-2020

> NCLT judgment dated 2023-03-06. Citation: TCN-2023-NCLT-04301. The case involves a petition filed by Intec Capital Limited (Financial Creditor) under Section…

- **Court:** NCLT
- **Order date:** 6 Mar 2023
- **Citation:** TCN-2023-NCLT-04301
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/srd-management-company-private-limited-cp-ib-no1058-pb-2020-a2a6cdb7

## Summary

### Background

The case involves a petition filed by Intec Capital Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against SRD Management Company Private Limited (Corporate Debtor). The Financial Creditor claimed default on loan facilities extended to the Corporate Debtor. The Corporate Debtor was incorporated on 28.07.2008. The Financial Creditor, a non-banking financial company, had granted two loan facilities to the Corporate Debtor. The Corporate Debtor defaulted in payment even after restructuring, leading to arbitration proceedings and subsequent settlement agreements. The petition was filed due to continued defaults.

## Facts

Intec Capital Limited, a non-banking financial company, extended two loan facilities totaling Rs. 3,14,00,000 to SRD Management Company Private Limited. The loan agreements were UL9/106 and 009/157, each for Rs. 1,57,00,000. Sanction letters were issued on 25.03.2010, and the loans were to be repaid in 24 equal monthly installments starting from 01.05.2010. The Corporate Debtor defaulted on payments, leading to restructuring of the loans and execution of a settlement deed on 30.10.2010. Even after restructuring, defaults continued, resulting in arbitration proceedings initiated on 21.07.2012. During arbitration, a settlement agreement was entered on 19.12.2012. The Corporate Debtor made partial payments on 14.01.2013. An arbitral award was passed on 18.01.2013. Further

…

## Issues and analysis

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

**Ratio:** An acknowledgement of debt by the Corporate Debtor extends the limitation period. The

…

**Reasoning:** The Corporate Debtor acknowledged the debt via email in August & November 2015 and in

…

**Interpretation:** The court interpreted the provisions related to limitation under the IBC,

…

**Application:** The court applied the ratio to the facts by noting that the Corporate Debtor's

…

## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Intec Capital…
- **Respondents:** SRD Management…

## Timeline

- **2008-07-28 — Incorporation of…**: SRD Management Company…
- **2010-03-25 — Sanction Lette…**: Financial Creditor issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

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/srd-management-company-private-limited-cp-ib-no1058-pb-2020-a2a6cdb7