Insolvency Plea
NCLT admits SBI's insolvency plea against RInfra arm SU Toll Road
This story was originally published at 18:29 IST on 18 August 2025
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--NCLT admits SBI's insolvency plea against RInfra arm SU Toll Road
By Surya Tripathi
NEW DELHI – The Mumbai bench of the National Company Law Tribunal Monday admitted a petition by State Bank of India to start insolvency proceedings against SU Toll Road Pvt. Ltd., a wholly owned subsidiary of Reliance Infrastructure Ltd., for an unpaid amount of INR 3.6 billion. The tribunal appointed Sanjay Kumar Mishra as an interim resolution professional of the debt-ridden company to carry out the functions as per the Insolvency and Bankruptcy Code, 2016.
The tribunal held that the insolvency petition was filed by the State Bank of India on Nov. 30, which was three years from the date of default on Jun. 1, 2023. Therefore, the present petition is held to be within the limitation period prescribed under Article 137 of the Schedule to the Limitation Act, 1963, said the tribunal.
The tribunal said SU Toll Road defaulted in repayment of debt to SBI and such a default was well "over the minimum threshold of Rs. 1 crore (INR 10 million), as prescribed u/s(under section) 4 of the Code".
In 2007, SU Toll Road was awarded a project by the National Highways Authority of India for operating, maintaining, strengthening and widening a part of the existing carriageway on the Salem-Ulundurpet section of the National Highway-68 in Tamil Nadu. For this, the loan was issued by Canara Bank-led consortium to the company in 2008, which in 2014 was refinanced by L&T Finance Ltd.
Thereafter, L&T Finance sold INR 3 billion of loan by way of a subdebt to State Bank of India and the remaining to other banks during 2015 to 2016. However, SU Toll Road committed defaults in payment of interests as well as repayment of instalment in terms of the sanctioned letters and facility agreement with the bank. The debt-ridden company defaulted on its obligation to repay State Bank of India's facilities under all six loan accounts on Jun. 1, 2023, and on account of such defaults continuing thereafter, the loan accounts were classified as non-performing assets on Aug. 30, 2023, in accordance with the guidelines issued by the Reserve Bank of India. Thereafter, the bank moved the tribunal to start insolvency proceedings against SU Toll Road.
On Monday, the shares of State Bank of India ended 0.1% higher at INR 827.65 on the National Stock Exchange and those of Reliance Infrastructure ended 0.8% higher at INR 261.85. End
Edited by Akul Nishant Akhoury
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