# Sangli District Central Co-operative Bank Limited vs. Swapnapurti Sugar Limited

> NCLT judgment dated 2026-08-25. Citation: TCN-2026-NCLT-00873. Sangli District Central Co-operative Bank Limited (Financial Creditor) filed an application…

- **Court:** NCLT
- **Order date:** 25 Aug 2026
- **Citation:** TCN-2026-NCLT-00873
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/sangli-district-central-co-operative-bank-limited-vs-swapnapurti-sugar-limited-x1edu

## Summary

### Background

Sangli District Central Co-operative Bank Limited (Financial Creditor) filed an application under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Swapnapurti Sugar Limited (Corporate Debtor) for a default of Rs. 38,71,15,232/-. The default date was stated as August 21, 2022, following the expiry of a SARFAESI notice. The Financial Creditor proposed Mr. Mahesh Bagla as the Interim Resolution Professional.

## Facts

Sangli District Central Co-operative Bank Limited (Financial Creditor) filed an application (C.P. (IB) No.1370/MB/2025) on December 9, 2025, under Section 7 of the IBC, 2016, to initiate CIRP against Swapnapurti Sugar Limited (Corporate Debtor).

The Corporate Debtor approached the Financial Creditor for a loan of Rs. 23 Crores for business development and growth.

The Financial Creditor sanctioned the loan on March 31, 2020, for a period of seven years, and the amount was disbursed to the Corporate Debtor on the same date.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial …

**Ratio:** An acknowledgment of debt in the Corporate Debtor's balance sheet, signed by its

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**Reasoning:** The Corporate Debtor's balance sheet for FY 2022-2023, signed on April 1, 2025,

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**Interpretation:** Section 18 of the Limitation Act, 1963, is applicable to proceedings under the

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**Application:** The Corporate Debtor's acknowledgment in its balance sheet for FY 2022-2023,

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Sangli District…
- **Respondents:** Swapnapurti Sugar…
- **Other parties:** Committee of…; Anil Lakshman…; +2 more
- **Advocates:** Ayush Ko…; Niharika…; +1 more

## Timeline

- **2020-03-31 — Loan Sanction and…**: Financial Creditor sanctioned a loan of Rs. 23 Crores to the Corporate Debtor and…
- **2020-08-03 — Mortgage Deed…**: Another Mortgage Deed was…

## 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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