# In the matter of Summit Ceminfra Private Limited

> NCLT judgment dated 2024-10-10. Citation: TCN-2024-NCLT-00450. The case involves a petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 10 Oct 2024
- **Citation:** TCN-2024-NCLT-00450
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/summit-ceminfra-private-limited-0146f38d

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Reliance Commercial Finance Limited, the Financial Creditor, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Summit Ceminfra Private Limited, the Corporate Debtor. The Financial Creditor claims a default of INR 1004,07,82,466/- as of 31.10.2023. The Corporate Debtor acknowledged its liability but attributed the default to unforeseen circumstances including the Covid-19 pandemic.

## Facts

Reliance Commercial Finance Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Summit Ceminfra Private Limited (Corporate Debtor). The Financial Creditor claimed a default of INR 1004,07,82,466/- as of 31.10.2023, broken down into outstanding principal amount (INR 419,00,00,000/-), outstanding interest (INR 311,52,41,096/-), and penal interest (INR 273,55,41,369/-). The Date of Default was established as 01.04.2019. The Corporate Debtor acknowledged its liability but attributed the default to unforeseen circumstances including the Covid-19 pandemic. The Financial Creditor had disbursed loan amounts through four different letters with

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency & Bankruptcy Code, 2016 is within the …

**Ratio:** A fresh period of limitation is computed when the Corporate Debtor acknowledges the debt

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**Reasoning:** The Financial Creditor placed on record the Financial Statement and Auditors' Report for

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**Interpretation:** Section 7 of the IBC requires that the application be filed within the

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**Application:** The Corporate Debtor's financial statements acknowledging the debt extended the

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Reliance Commercia…
- **Respondents:** Summit Ceminfra…
- **Advocates:** Siddha Pa…; Vivek S…; +1 more

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and Bankruptcy…
- **2018-04-05 — Facility cum Hyothecatio…**: Corporate Debtor entered into Facility cum Hyothecation Agreement dated 05.04.2018 and…

## 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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