NCLT Mumbai Admits SBI’s ₹40.76 Crore Insolvency Plea Against Sumeru Buildcon; CIRP Initiated

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.