NCLT Kolkata Initiates CIRP Against Sunbeam Dealers Private Limited on Bank of India's Section 7 Petition
Case Overview
Bank of India Vs Sunbeam Dealers Private Limited (NCLT Kolkata)
The NCLT Kolkata Bench admitted a petition filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking commencement of the Corporate Insolvency Resolution Process (CIRP) against Sunbeam Dealers Private Limited. The financial debt in default stood at Rs. 17,54,26,237.99 as on 17.10.2025, comprising principal, accrued interest, and applicable charges.
The Tribunal, after confirming that the corporate debtor had neither entered appearance nor filed any reply despite repeated service of notices, proceeded to adjudicate the matter on an ex parte basis and ultimately granted admission.
Background and Procedural History
The NCLT Kolkata Bench had previously directed the corporate debtor to file its reply affidavit within a stipulated timeframe, with a clear warning that failure to comply would result in an ex parte order. Notices were dispatched through speed post as well as dasti service. Despite these steps, no representative appeared on behalf of Sunbeam Dealers Private Limited.
An official from Bank of India physically visited the registered office of the corporate debtor on 16.04.2026 and discovered that an entirely different company was operating from those premises. The Tribunal's order was subsequently served upon Mr. Amit Sarawgi, Director of the corporate debtor, who acknowledged receipt in writing. The matter was thereafter reserved for orders on 23.04.2026.
Factual Background
The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority) Rules, 2016.
Corporate Debtor's Profile
- Name: Sunbeam Dealers Private Limited
- CIN: U51311JH2013PTC001555
- Registered Address: Shop No. 206, 2nd Floor, Samriddhi Square, Kishorganj, Ranchi – 834001
- Nature of Business: Wholesale trade in textiles, clothing, and footwear
- Incorporated under: Companies Act, 2013
Submissions of Bank of India (Financial Creditor)
Initial Credit Facility
The Board of Directors of Sunbeam Dealers Private Limited passed a Board Resolution dated 25.09.2014 authorising Mr. Amit Sarawgi to borrow funds from the Bank on behalf of the company. Acting on this authorisation, Bank of India sanctioned a cash credit facility of Rs. 2.50 crore on 26.09.2014 for business operational purposes.
In furtherance of this arrangement, the corporate debtor executed all necessary loan documentation, including a Demand Promissory Note dated 26.09.2014, whereby it formally committed to repaying the sanctioned amount along with applicable interest.
Enhancement of Credit Facility
Subsequently, the corporate debtor approached the Bank seeking an upward revision of its credit limits. Following due process, Bank of India sanctioned an enhanced cash credit facility of Rs. 10 crore on 30.09.2016. To formalise this enhanced arrangement, the corporate debtor executed:
- A fresh Demand Promissory Note dated 30.09.2016
- An Acknowledgement of Debt dated 30.09.2016
The terms governing the enhanced facility stipulated repayment of dues along with interest at 11.25% per annum with monthly rests, subject to revision in accordance with Reserve Bank of India guidelines and circulars issued from time to time.
Default and NPA Classification
Despite having availed the credit facilities, the corporate debtor consistently failed to honour its repayment commitments. The Bank issued multiple reminders and demands for repayment, none of which elicited any response or payment. As a direct consequence of this persistent and wilful default, the loan account was classified as a Non-Performing Asset (NPA) on 30.04.2018 in accordance with RBI's prudential norms.
A formal legal demand notice dated 21.06.2018 was thereafter issued calling upon the corporate debtor to clear the outstanding dues. Despite this, no repayment was forthcoming.
Quantum of Debt
The total outstanding amount due and payable as of 17.10.2025 is:
Rs. 17,54,26,237.99 (Rupees Seventeen Crore Fifty-Four Lakh Twenty-Six Thousand Two Hundred Thirty-Seven and Ninety-Nine Paise Only)
This sum comprises:
- Principal: Rs. 9,05,27,791.58
- Interest and other charges: Computed at 11.25% per annum from 31.03.2018 onwards