# In the matter of Sri Mata Infratech Limited CP (IB) No. 104-7-HDB-2020

> NCLT judgment dated 2022-04-28. Citation: TCN-2022-NCLT-03006. The case involves an application filed by State Bank of India (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 28 Apr 2022
- **Citation:** TCN-2022-NCLT-03006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-mata-infratech-limited-cp-ib-no-104-7-hdb-2020-0dcc0b84

## Summary

### Background

The case involves an application filed by State Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sri Mata Infratech Limited (Corporate Debtor). The Corporate Debtor had obtained various term loans and cash credit limits from the Financial Creditor, with Rs. 54.87 Crore disbursed between 2010 and 2011. The Corporate Debtor defaulted, leading to the account being declared NPA in 2012. The Financial Creditor pursued recovery measures under SARFAESI Act and filed an Original Application (O.A.) before the Debt Recovery Tribunal (DRT).

## Facts

State Bank of India (SBI) extended term loans and cash credit facilities to Sri Mata Infratech Ltd, disbursing Rs. 54.87 Crore between 2010-08-11 and 2011-01-18. Sri Mata Infratech defaulted on repayments, leading SBI to classify the account as a Non-Performing Asset (NPA) on 2012-08-29. SBI initiated recovery proceedings under the SARFAESI Act and filed O.A. No. 2339 of 2017 before the Debt Recovery Tribunal (DRT). The DRT passed an order on 2017-04-22, directing the Corporate Debtor to pay Rs. 65,89,85,331.70. Subsequently, the DRT issued a Recovery Certificate for Rs. 90,81,57,660.70 on 2017-12-16. SBI also issued a notice under Section 13 of the SARFAESI Act in 2014 and took symbolic possession of assets. Sri Mata Infratech filed writ petitions challenging the

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## Issues and analysis

### Issue 1: Whether the instant application …

**Ratio:** The principle established in Dena Bank vs. C. Shivakumar Reddy states that a judgment or

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**Reasoning:** The Adjudicating Authority considered the Supreme Court's judgment in Dena Bank vs. C.

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**Interpretation:** Section 238A of the IBC makes the Limitation Act applicable to IBC proceedings.

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**Application:** In this case, the DRT issued a decree and Recovery Certificate in favor of SBI.

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## Parties

- **Judges:** Bhaskara Pantula…; BINOD KUMAR…
- **Respondents:** Mata Infrat…

## Timeline

- **2010-08-11 — Loan Disbursem…**: State Bank of India started disbursing…
- **2011-01-18 — Loan Disburse…**: State Bank of India completed disbursing loans to Sri Mata Infratech Ltd, totaling Rs.…

## 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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