# In the matter of Sushitex Industries Private Limited  C.P. No. 1254-IBC-MB-2022

> NCLT judgment dated 2023-04-10. Citation: TCN-2023-NCLT-03893. Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 10 Apr 2023
- **Citation:** TCN-2023-NCLT-03893
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sushitex-industries-private-limited-cp-no-1254-ibc-mb-2022-7508cbe3

## Summary

### Background

Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sushitex Industries Private Limited, the Corporate Debtor, due to an unresolved financial debt of Rs. 30,48,23,962.64. The Corporate Debtor had availed credit facilities of Rs. 24.80 crore in 2010, which were renewed until September 26, 2018. Upon the Corporate Debtor's failure to repay, the account was classified as NPA on July 31, 2019, and a demand notice was issued on August 6, 2019, under Section 13(2) of the SARFAESI Act. The applicant took possession of the secured assets of the Corporate Debtor on June 19 and 20, 2020.

## Facts

Bank of India, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sushitex Industries Private Limited, the Corporate Debtor. The Corporate Debtor had availed credit facilities of Rs. 24.80 crore in 2010, which were renewed until September 26, 2018. Due to the Corporate Debtor's failure to make repayments, the Financial Creditor classified the account as NPA on July 31, 2019. A demand notice was issued on August 6, 2019, under Section 13(2) of the SARFAESI Act, demanding repayment of Rs. 32.64 crore. The Applicant took possession of the secured assets of the Corporate Debtor on June 19 and 20, 2020. The Corporate Debtor initially opposed the petition but

…

## Issues and analysis

### Issue 1: Whether the Company Petition filed by Bank of India under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

…

**Reasoning:** The Corporate Debtor availed credit facilities from the Financial Creditor, and upon

…

**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

…

**Application:** The Corporate Debtor's admission of debt and default, coupled with the

…

## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** Bank of…
- **Respondents:** Sushitex Industrie…
- **Advocates:** KunalKa…; Tanushree…; +2 more

## Timeline

- **2010-01-01 — Credit Facilities…**: The Corporate Debtor availed credit…
- **2018-09-26 — Renewal of Credit…**: The credit facilities were renewed from time…

## 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)

---

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/sushitex-industries-private-limited-cp-no-1254-ibc-mb-2022-7508cbe3