NCLT Mumbai Admits SBI’s ₹40.76 Crore Insolvency Plea Against Sumeru Buildcon; CIRP Initiated
Court / Authority
Insolvency & Bankruptcy Board
Update / Judgement Date
22 Aug 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
2 min read
View Count
1
Key Facts and Tribunal Findings
The National Company Law Tribunal (NCLT), Mumbai Bench-VI, has admitted an insolvency application filed by State Bank of India (SBI) under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s Sumeru Buildcon Private Limited, initiating the Corporate Insolvency Resolution Process (CIRP). SBI had filed the application claiming a default of ₹40.76 crore arising from credit facilities extended to the corporate debtor, including a ₹25 crore cash credit facility sanctioned in 2018 and a ₹4.08 crore working capital term loan under the GECL scheme in 2020. The loans were secured through mortgage, hypothecation, and guarantee arrangements.
The Tribunal noted that the corporate debtor failed to adhere to repayment obligations, leading to classification of the account as a non-performing asset (NPA) on 26 September 2021. A demand notice under Section 13(2) of the SARFAESI Act was issued, but the dues remained unpaid. The date of default was recorded as 29 June 2021, supported by authenticated records from the National e-Governance Services Limited (NeSL). The Tribunal also took into account subsequent acknowledgment of debt by the corporate debtor through email dated 29 November 2022, along with a part payment of ₹75 lakh in April 2023, thereby extending the limitation period.
The corporate debtor failed to appear despite substituted service through publication, and the matter proceeded ex parte. On examining the material on record, the Tribunal held that the existence of financial debt and occurrence of default were clearly established. Relying on settled Supreme Court jurisprudence, it reiterated that the scope of inquiry under Section 7 is limited to verification of default.
Accordingly, the application was admitted, and a moratorium under Section 14 was declared. Mr. Srigini Rajat Naidu was appointed as the Interim Resolution Professional to conduct the CIRP.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about Insolvency & Bankruptcy Board
- What is the IBBI?
- The Insolvency and Bankruptcy Board of India, set up on 1 October 2016 under the Insolvency and Bankruptcy Code, 2016 (IBC), regulates insolvency professionals, insolvency professional agencies, information utilities and registered valuers. It also frames the regulations for insolvency processes.
- When can insolvency be started against a company?
- A financial creditor, an operational creditor or the company itself can apply to the National Company Law Tribunal (NCLT) once there is a default of at least ₹1 crore. On admission, a moratorium starts and an interim resolution professional takes charge.
- How long does the corporate insolvency process take?
- The Code provides 180 days for the corporate insolvency resolution process (CIRP), extendable up to an overall limit of 330 days, including time spent in litigation. In practice, many cases take longer. The IBC (Amendment) Act, 2026, largely in force from 26 May 2026, requires the NCLT to decide admission applications within 14 days and to record reasons for any delay.
- Where can an NCLT insolvency order be appealed?
- An appeal lies to the National Company Law Appellate Tribunal (NCLAT) within 30 days, extendable by up to 15 days for sufficient cause. A further appeal lies to the Supreme Court on a question of law.
- How can White Collar Professional help with a insolvency matter?
- Post your requirement on White Collar Professional to receive proposals from verified Insolvency Professionals, Chartered Accountants and Advocates, compare them, and pay securely through the platform. This page also tracks the latest insolvency IBC and IBBI updates as they are reported.
