# In the matter of PRASANNABIOMOLECULES PRIVATE LIMITED

> NCLT judgment dated 2026-03-18. Citation: TCN-2026-NCLT-00237. SBI Factors Ltd filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) to…

- **Court:** NCLT
- **Order date:** 18 Mar 2026
- **Citation:** TCN-2026-NCLT-00237
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/prasannabiomolecules-private-limited-7faeb38e

## Summary

### Background

SBI Factors Ltd filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Prasanna Bio Molecules Pvt Ltd, the Corporate Debtor, due to default in payment of debt.

## Facts

SBI Factors Ltd sanctioned a Trade Finance Facility to Prasanna Bio Molecules Pvt Ltd up to ₹5.0 Crores vide Sanction Letter No. 2024/1 dated 26.08.2024.

The Corporate Debtor executed a Deed of Charge, Demand Promissory Note, MSME Undertaking, and Master Factoring Agreement.

The Managing Director and Director of the Corporate Debtor, Mr. K Purnachandra Rao Kavuri and Mrs. Anusha Kavuri, executed Personal Guarantees.

The Corporate Debtor defaulted in making payments against invoices, leading to the account being classified as NPA w.e.f. 10.03.2025.

SBI Factors Ltd issued Demand Notices to the Corporate Debtor and the Guarantors.

The Corporate Debtor made part payments of Rs 10 lakhs on 11.03.2025 and Rs 5 lakhs on 18.03.2025.

…

## Issues and analysis

### Issue 1: Whether the application under …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor defaulted on its debt

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**Interpretation:** The Adjudicating Authority interpreted Section 7 to mean that if a default has

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**Application:** The Adjudicating Authority applied Section 7 and admitted the application,

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** SBI Facto…
- **Respondents:** Prasanna Bio…
- **Other parties:** K Purnachandra…; Anusha K…; +2 more
- **Advocates:** Mr Ravi C…

## Timeline

- **2024-08-26 — Sanction…**: SBI Factors Ltd sanctioned a Trade Finance Facility to Prasanna Bio Molecules Pvt Ltd up…
- **2024-08-27 — Board Reso…**: Terms and conditions of the sanction letter…

## 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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