# In the matter of Matoshri Laxmi Sugar Co-Generation Industries Limited

> NCLT judgment dated 2025-07-17. Citation: TCN-2025-NCLT-00779. Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 17 Jul 2025
- **Citation:** TCN-2025-NCLT-00779
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/matoshri-laxmi-sugar-co-generation-industries-limited-05598008

## Summary

### Background

Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Matoshri Laxmi Sugar Co-Generation Industries Limited, seeking commencement of the Corporate Insolvency Resolution Process (CIRP). The application was based on a default of INR 56,00,99,701/- as of 10.08.2024.

## Facts

Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Matoshri Laxmi Sugar Co-Generation Industries Limited.

The amount claimed to be in default as on 10.08.2024 is INR 56,00,99,701/-.

The date of default in respect of CC Pledge facility is 24.03.2023 and the date of default in respect of the Term Loan Facility is 06.12.2023.

The Applicant Bank has proposed the name of Mr. Ram Singh Setia to be appointed as the IRP of the Corporate Debtor.

The Corporate Debtor had availed various credit facilities under a Consortium Arrangement consisting of Applicant Bank, Punjab National Bank and Vijaya Bank (now Bank of Baroda).

The Financial Creditor obtained Judgments against the Corporate Debtor on 24.03.2023 and 06.12.2023.…

## Issues and analysis

### Issue 1: Whether the application …

**Ratio:** The Hon'ble Supreme Court in Dena Bank v. C. Shivakumar Reddy held that a judgment and/or

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**Reasoning:** The Adjudicating Authority considered the judgments of the Hon'ble DRT, Pune, obtained by

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**Interpretation:** The judgments and recovery certificate gave rise to a fresh cause of action to

…

**Application:** Since the present petition was filed on 05.09.2024, within three years from the

…

## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Union Bank of…
- **Respondents:** Matoshri Laxmi…
- **Other parties:** Shivraj M…; Ram Singh…
- **Advocates:** H.P.…; Nirupam…; +2 more

## Timeline

- **2024-09-05 — Applicatio…**: Application filed by Union Bank of…
- **2023-03-24 — DRT Judgmen…**: Judgment dated 24.03.2023 in OA No.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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