# State Bank of India vs. Sri Venkata Sivaparvathi Spinning Mills Private Limited

> NCLT judgment dated 8 May 2026. Citation: TCN-2026-NCLT-00530. State Bank of India, a financial creditor, filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 8 May 2026
- **Citation:** TCN-2026-NCLT-00530
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/state-bank-of-india-vs-sri-venkata-sivaparvathi-spinning-mills-private-limited-ynq47

## Summary

### Background

State Bank of India, a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Sri Venkata Sivaparvathi Spinning Mills Private Limited, the corporate debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The petition, bearing no. CP(IB)/11/7/AMR/2026, was filed on March 4, 2026, seeking to recover a default amount of Rs.57,15,17,200/-, with the date of default being September 1, 2024. The corporate debtor had availed various credit facilities from a consortium led by the State Bank of India, which subsequently classified the loan account as a Non-Performing Asset (NPA) on November 29, 2024. Despite legal notices and an application before the Debt Recovery Tribunal (DRT), the debt remained unpaid.

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## Facts

State Bank of India, a Financial Creditor, filed a petition under Section 7 of the IBC, 2016 against Sri Venkata Sivaparvathi Spinning Mills Private Limited, a Corporate Debtor.

The petition, bearing no. CP(IB)/11/7/AMR/2026, was filed on 2026-03-04.

Sri Venkata Sivaparvathi Spinning Mills Private Limited's registered office is located at Door No.19-8-97, Near Suryadevara Estates, Etukuru Road, Guntur-522003, Andhra Pradesh, which establishes territorial jurisdiction for the NCLT Amaravati Bench.

State Bank of India is a body corporate engaged in banking business, and Sri Venkata Sivaparvathi Spinning Mills Private Limited is a company incorporated under the Companies Act, 1956, engaged in textile manufacturing.

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## Issues and analysis

### Issue 1: Whether the Petition has been …

**Ratio:** A petition under IBC is within the limitation period if filed within three years from the

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**Reasoning:** As per Part-IV of Form 1 of the Petition, the date of default is 2024-09-01. The Petition

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**Interpretation:** The three-year limitation period for filing an IBC petition is calculated from

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**Application:** Since the petition was filed in March 2026, which falls within three years of

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## Parties

- **Judges:** KISHORE VEMULAPALL…; UMESH KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** Venkata Sivaparvat…
- **Other parties:** Insolvency and…; Corporate…; +18 more
- **Advocates:** G.P. Yash V…

## Timeline

- **2003-05-01 — Corporate Debtor…**: Sri Venkata Sivaparvathi Spinning…
- **2021-03-24 — Ministry of Corporate…**: Notification regarding audit trails in accounting software, which IRP/RP is to check for…

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