# In the matter of SHREE MAHAGANGA SUGAR MILLS LIMITED

> NCLT judgment dated 2025-07-11. Citation: TCN-2025-NCLT-00798. K Sera Sera Box Office Private Limited filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 11 Jul 2025
- **Citation:** TCN-2025-NCLT-00798
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/shree-mahaganga-sugar-mills-limited-c7426856

## Summary

### Background

K Sera Sera Box Office Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Shree Mahaganga Sugar Mills Limited, the Corporate Debtor (CD). The application was filed due to a default in repayment of a loan amount.

## Facts

A Tripartite Loan Agreement dated 09.10.2020 was entered into between K Sera Sera Box Office Private Limited (Applicant/lender), SPJ Exports (borrower), and Shree Mahaganga Sugar Mills Limited (CD/guarantor) for Rs.1,09,00,000/-.

The amount claimed to be in default is Rs.1,61,35,928.77/- as on 05.11.2024, including a principal amount of Rs.1,09,00,000/- and interest amounting to Rs.52,35,928.77/-. The date of default mentioned is 22.10.2024.

The Corporate Debtor (CD) admitted to repaying the loan amount but requested to restructure the repayment schedule with an extension of 6 months.

The Applicant issued a Demand Notice dated 15.10.2024 to the CD recalling the entire loan amount together with interest, overdue interest, and other charges.

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## Issues and analysis

### Issue 1: Whether the existence of an arbitration clause in the Tripartite Loan Agreement ousts the …

**Ratio:** The IBC, being a special legislation, incorporates a non-obstante clause under Section

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**Reasoning:** The Hon'ble Supreme Court in Tata Consultancy Services Ltd. v. Vishal Ghisulal Jain has

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**Interpretation:** The jurisdiction of the Adjudicating Authority under the IBC is not excluded

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**Application:** Contractual dispute resolution clauses do not defeat statutory remedies

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** K Sera Sera Box…
- **Respondents:** Shree Mahaganga…
- **Other parties:** Hiramani Babulal…; Dharamveer Singh…; +1 more
- **Advocates:** Sarang P…; Seema…; +1 more

## Timeline

- **09.10.2020 — Tripartite Loan…**: A Tripartite Loan Agreement was entered into between the Applicant, SPJ Exports, and the…
- **22.10.2024 — Date of D…**: The date of default…

## 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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