# State Bank of India Stressed Assets Management vs. Suryajyoti Infotech Limited & Suryajyoti Spinning Mills Ltd

> NCLT judgment dated 2026-09-18. Citation: TCN-2026-NCLT-01026. State Bank of India Stressed Assets Management (Financial Creditor) filed a Company Petition…

- **Court:** NCLT
- **Order date:** 18 Sept 2026
- **Citation:** TCN-2026-NCLT-01026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/state-bank-of-india-stressed-assets-management-vs-suryajyoti-infotech-limited-ex70z

## Summary

### Background

State Bank of India Stressed Assets Management (Financial Creditor) filed a Company Petition under Section 7 of the IBC against Suryajyoti Infotech Limited (Corporate Guarantor/Respondent No.1) for default on a financial debt of Rs. 732,17,43,319/-. The debt originated from credit facilities granted to Suryajyoti Spinning Mills Limited (Principal Borrower/Respondent No.2), for which Suryajyoti Infotech Limited provided a corporate guarantee. The Principal Borrower is already under liquidation.

## Facts

State Bank of India Stressed Assets Management (Financial Creditor) filed a Company Petition under Section 7 of the IBC against Suryajyoti Infotech Limited (Corporate Debtor/Respondent No.1).

The petition seeks initiation of CIRP due to an alleged default in repayment of financial debt amounting to Rs. 732,17,43,319/- as on 09.05.2023.

Suryajyoti Infotech Limited (Respondent No.1) is the Corporate Guarantor for credit facilities granted to Suryajyoti Spinning Mills Limited (Principal Borrower/Respondent No.2).

The Principal Borrower is under liquidation pursuant to an order dated 18.04.2023.

The Principal Borrower availed Rupee Term Loans, Foreign Currency Loans, Corporate Loans, and Working Capital facilities from the Financial Creditor.

…

## Issues and analysis

### Issue 1: Whether the financial facilities availed by the Principal Borrower constitute a “financial …

**Ratio:** Financial facilities availed by the Principal Borrower constitute "financial

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**Reasoning:** The facilities arose from the disbursement of amounts against the consideration for the

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**Interpretation:** Section 5(8)(a) and 5(8)(i) of the IBC define financial debt to include

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**Application:** The Rupee Term Loans, Foreign Currency Loans, Corporate Loans, and Working

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## Parties

- **Judges:** SHRI. RAJEEV…; SHRI. SANJA…
- **Appellants:** State Bank of…; State Bank of…
- **Respondents:** Suryajyoti…; Suryajyoti…
- **Other parties:** Kaspa Venu…
- **Advocates:** Mr.V.V.S.…; Sagarika…; +2 more

## Timeline

- **2013-03-27 — Security Trustee…**: Security Trustee Agreement…
- **2013-06-27 — Corporate Guarantee…**: Corporate Guarantee Agreement executed by…

## 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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