# In the matter of VYSHNAVI SPICES LLP

> NCLT judgment dated 2025-06-06. Citation: TCN-2025-NCLT-00004. The Small Industries Development Bank of India (SIDBI), acting as the Financial Creditor, filed…

- **Court:** NCLT
- **Order date:** 6 Jun 2025
- **Citation:** TCN-2025-NCLT-00004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vyshnavi-spices-llp-60ab5a0e

## Summary

### Background

The Small Industries Development Bank of India (SIDBI), acting as the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Vyshnavi Spices LLP, the Corporate Debtor, due to outstanding dues of Rs.9,55,26,315/- as of 10.10.2024. The Corporate Debtor had defaulted on loan repayments, leading to the account being classified as a Non-Performing Asset (NPA). The Financial Creditor sought to recover the outstanding amount through this petition.

## Facts

Small Industries Development Bank of India (SIDBI) sanctioned a term loan of Rs.740 lakhs to Vyshnavi Spices LLP under the Direct Credit Scheme (DCS). Subsequently, SIDBI sanctioned an additional loan of Rs.165 lakhs under the TWARIT Scheme. Vyshnavi Spices LLP defaulted on the repayment of EMIs, leading to its account being classified as a Non-Performing Asset (NPA) on 10.04.2023. SIDBI issued a notice under Section 7 of the IBC for the commencement of CIRP, informing Vyshnavi Spices LLP of its liability to pay Rs.8,53,65,575/-. SIDBI also issued a notice under Section 13(2) of the SARFAESI Act, 2002, demanding payment of dues amounting to Rs.8,62,84,363/-. The total amount of debt claimed to be in default is Rs.9,55,26,315/- as of 10.10.2024, including principal,

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## Issues and analysis

### Issue 1: Whether the present petition is …

**Ratio:** The limitation period for filing a petition under Section 7 of the IBC is three years

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**Reasoning:** The Corporate Debtor's account was declared as NPA on 10.04.2023, and the date of default

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**Interpretation:** The Adjudicating Authority must determine whether the petition was filed within

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**Application:** The Adjudicating Authority determined that the petition was filed within the

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## Parties

- **Judges:** UMESH KUMAR…; KISHORE VEMULAPALL…
- **Appellants:** Small Industries…
- **Respondents:** Vyshnavi Spices…; M/s. Vyshnavi…

## Timeline

- **2018-03-10 — Incorporation of…**: Vyshnavi Spices LLP was…
- **2019-09-18 — Loan App…**: Financial Creditor approved a…

## 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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